Tapping into Your Home Equity
Do you want to tap into your home's equity to pay for a home remodeling project or to pay off a credit card? A fixed- or adjustable-rate loan secured by your home equity is called a "home equity loan." You borrow a sum of money to be paid back monthly over a set time frame, much like your original mortgage agreement. People often use the phrases "home equity loan" and "second mortgage" to mean the same thing.
Getting the Loan
The process for a home equity loan is similar to getting your current mortgage. You will be pleased to know that the closing costs are lower with this loan, and although there is a higher interest rate than a first mortgage loan, the interest may be deducted from your taxes.
To qualify for a second mortgage, your credit must be in good standing and you need to be able to provide documentation of your salary. A home appraisal will be necessary to assess the home's current market value. To check on your home equity/second mortgage choices, contact us at 303-220-7500.
Have questions about your home equity? Call us at 303-220-7500. It's our job to answer home equity loan questions, so we're happy to help!