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, like with your first mortgage loan. The terms "home equity loan" and "second mortgage" might be used interchangeably.
You'll be accustomed to the process as it's a lot like the process toward your existing mortgage. You will be pleased to know that the closing costs are lower with a home equity loan, and even though there is a higher interest rate than a first mortgage loan, the interest can be deducted from your taxes.
You will have to provide proof of your salary and have good credit to qualify for a second mortgage. To determine your home's current value, your lending institution will require an appraisal of your home. To talk about your home equity/second mortgage options, call us at 5626935048.
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