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? A home equity loan is a fixed or adjustable rate loan that uses your home equity as collateral. You will repay this loan over an agreed time period by making payments monthly, like with your original mortgage loan. The terms "home equity loan" and "second mortgage" may be used interchangeably.

Getting the Loan

Getting your first mortgage is a process similar to that of a home equity loan. Your closing costs (usually two to three percent of the loan amount) are generally smaller and, even though your rate of interest is larger on a home equity loan, the interest paid can be tax deductible.

If you would like to qualify for a second mortgage, your credit has to be in good standing and you need to be able to verify your income. A home appraisal will be needed to calculate the property's market value. To talk about your home equity/second mortgage options, call us at (281) 778-0805.

Have questions about your home equity? Call us at (281) 778-0805. 1st Credential Mortgage Inc answers questions about home equity every day.

Home Status Report

Want to know if a home is still on the market, or if the price has changed? We can help. Simply fill out the information below and with no obligation to you we'll get back to you with your requested information. We guarantee your privacy.

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