What is a Home Equity Loan?
Do you need to tap into your home's equity to pay for a home remodeling project or to pay off a credit card? In a home equity loan, your fixed or adjustable rate loan is secured by your home equity. As with your first mortgage, you borrow a particular amount to be repaid monthly over a certain period of time. The terms "home equity loan" and "second mortgage" can be used interchangeably.
Home Equity Loan Specifics
Getting your current mortgage is a similar routine to that of a home equity loan. You will be happy to know the closing costs are smaller with a home equity loan, and even though there is a bigger interest rate than a first mortgage, the interest can be deducted on your taxes.
To qualify for a second mortgage, your credit must be in good standing and you must be able to document your salary. To figure out your home's current value, your lender will require a home appraisal. To talk about your home equity/second mortgage loan choices, contact us at 214-396-3650.
Have questions about your home equity? Call us at 214-396-3650. We answer home equity loan questions questions every day.