What is a Home Equity Loan?

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, a fixed or adjustable rate loan is secured by the equity in your home. You borrow a sum to be repaid in monthly payments during a set period of time, just like your original mortgage. A home equity loan is sometimes also referred to as a second mortgage.

Getting Your Home Equity Loan

You will be comfortable with the process as it is much like getting your first mortgage. You will be pleased to learn the closing costs are lower with a home equity loan, and even though there is a larger interest rate than a first mortgage loan, the interest may be deducted from your taxes.

In order to qualify for a second mortgage, you must have a positive credit score and you should be able to verify your income. To assess your home's current value, your lender will require an appraisal of your home. To talk about your home equity options, contact 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.