Perhaps you are considering tapping into your home equity to renovate your kitchen, or take care of the balance on a credit card. A fixed- or adjustable-rate loan that is secured by the home equity you have built up is called a "home equity loan." You'll repay this loan over an agreed time period by making monthly payments, like your first mortgage. A home equity loan can also be referred to as a second mortgage.
The steps toward a home equity loan are similar to getting your first mortgage loan. You will be happy to learn that the closing costs are lower with a home equity loan, and although there is a larger interest rate than a first mortgage, the interest may be deducted from your taxes.
In order to qualify for a second mortgage, you will need a positive credit score and you must be able to verify your salary. A home appraisal will be required to determine the home's market value. To discuss your home equity loan options, contact us at 5626935048.
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