Tapping into Your Home Equity

Do you need to tap into your home's equity to pay for a home remodeling project or to pay off a credit card? In a home equity loan, your fixed or adjustable rate loan is secured by your home equity. You will repay your loan over an agreed period of time by making payments monthly, like with your original mortgage. People often use the phrases "home equity loan" and "second mortgage" to mean the same thing.

Home Equity Loan Specifics

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

If you'd like to qualify for a second mortgage, you will need a reasonable credit score and you must be able to provide documentation of your income. A home appraisal will be necessary to calculate the home's current market value. To discuss your home equity/second mortgage choices, 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.