Perhaps you are considering tapping into your home equity to renovate your kitchen, or take care of the balance on a credit card. A home equity loan is a fixed rate or adjustable rate loan that uses your home equity as collateral. You'll repay the loan over an agreed time period by making payments monthly, just like your original mortgage loan. People often use the terms "home equity loan" and "second mortgage" to mean the same thing.
The steps toward a home equity loan are similar to getting your current mortgage loan. Your closing costs (often two to three percent of the loan amount) are typically lower and, although the interest rate is higher on a home equity loan, the interest paid is tax deductible.
To qualify for a second mortgage, you need to have a reasonable credit score and you should be able to provide documentation of your salary. To assess your home's current value, your lending institution will require an appraisal of your home. To explore your home equity/second mortgage loan options, contact us at 5626935048.
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