Have you considered tapping into your home equity to send a child off to college, or remodel your home? A fixed- or adjustable-rate loan secured by the home equity you have built up is called a "home equity loan." You will repay your loan over an agreed time period by making monthly payments, just like with your first mortgage. A home equity loan might also be called a second mortgage.
You'll be familiar with the process as it's much like getting your existing mortgage. The closing costs (often two to three percent of the loan amount) are generally smaller and, although your interest rate is higher on a home equity loan, the interest paid will be tax deductible.
You will have to provide income verification and have a reasonable credit score to qualify for a home equity loan. A home appraisal will be needed to assess the property's current market value. To talk about your home equity/second mortgage loan options, contact us at 5626935048.
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