Perhaps you are considering tapping into your home equity to renovate your kitchen, or take care of the balance on a credit card. In a home equity loan, your fixed or adjustable rate loan is secured by your home equity. You will repay your loan over an agreed period of time by making payments monthly, like with your original mortgage loan. The terms "home equity loan" and "second mortgage" are often used interchangeably.
The steps toward a home equity loan are similar to getting your first mortgage loan. The closing costs (usually 2-3& of the loan amount) are usually smaller and, although the rate of interest is more on a home equity loan, the interest can be tax deductible.
In order to qualify for a second mortgage, your credit must be in good standing and you must be able to provide documentation of your salary. To assess your home's current value, your lender will ask for a home appraisal. To explore your home equity loan options, call us at 5626935048.
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