Have you considered tapping into your home equity to send a child off to college, or remodel your home? A home equity loan is a fixed or adjustable-rate loan that uses the equity in your home as collateral. You borrow a lump sum to be repaid with monthly payments over a set time frame, just as you do with your first mortgage. You can use the terms "home equity loan" and "second mortgage" interchangeably.
The steps toward a home equity loan are similar to getting your current mortgage loan. You will be pleased to know that the closing costs are lower with this loan, and although there is a bigger interest rate than a first mortgage, the interest can be deducted from your taxes.
In order to qualify for a second mortgage, your credit must be in good standing and you must be able to document your income. To assess your home's market value, your lender will ask for an appraisal of your home. To talk about your home equity/second mortgage loan options, call us at (562) 693-5048.
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