Tapping into Your Home Equity

Have you considered tapping into your home equity to send a child off to college, or remodel your home? In a home equity loan, a fixed or adjustable rate loan is secured by your home equity. Similar to your first mortgage, you borrow a specific sum of money to be paid back monthly over a period of time. The terms "home equity loan" and "second mortgage" are often used interchangeably.

Getting the Loan

Getting your current mortgage is a process similar to that of a home equity loan. The closing costs (often two to three percent of the loan amount) are generally lower and, although your interest rate is larger on a home equity loan, the interest paid will be tax deductible.

In order to qualify for a second mortgage, your credit needs to be in good standing and you must be able to document your salary. A home appraisal is required to assess the property's market value. To discuss your home equity/second mortgage loan choices, contact us at 2817780805.

Have questions about your home equity? Call us at 2817780805. 1st Credential Mortgage Inc answers questions about home equity every day.