Tapping into Your Home Equity

Perhaps you are considering tapping into your home equity to renovate your kitchen, or take care of the balance on a credit card. In a home equity loan, a fixed or adjustable rate loan is secured by the equity in your home. Similar to your first mortgage, you borrow a particular amount to be repaid monthly over a period of time. The terms "home equity loan" and "second mortgage" might be used interchangeably.

Getting the Loan

You'll be familiar with the process as it's a lot like the process toward your current mortgage. You'll be happy to know the closing costs are lower with a home equity loan, and although there is a bigger interest rate than a traditional mortgage, the interest may be deducted on your taxes.

To qualify for a second mortgage, you must have a positive credit score and you need to be able to document your salary. To assess your home's current value, your lender will ask for an appraisal of your home. To discuss your home equity/second mortgage loan options, contact us at 2817780805.

Have questions about your home equity? Call us at 2817780805. We answer home equity loan questions questions every day.