What is a Home Equity Loan?

Have you considered tapping into your home equity to send a child off to college, or remodel your home? With a home equity loan, a fixed or adjustable rate loan is secured by the equity in your home. You'll repay the loan over an agreed time period by making payments monthly, like your first mortgage. The terms "home equity loan" and "second mortgage" are often used interchangeably.

Getting Your Home Equity Loan

The process for a home equity loan is similar to getting your first mortgage. You'll be happy to learn that the closing costs are smaller with a home equity loan, and although there is a bigger interest rate than a first mortgage, the interest may be deducted on your taxes.

If you would like to qualify for a second mortgage, your credit must be in good standing and you need to be able to document your salary. To figure out your home's current value, your lender will require a home appraisal. To check on your home equity/second mortgage loan options, contact us at (281) 778-0805.

Have questions about your home equity? Call us at (281) 778-0805. It's our job to answer home equity loan questions, so we're happy to help!