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? In a home equity loan, a fixed or adjustable rate loan is secured by the equity in your home. As with your first mortgage, you can borrow a certain amount to be repaid monthly over a period of time. A home equity loan also can be called a second mortgage.

Getting Your Home Equity Loan

Getting your first mortgage is a similar process to that of a home equity loan. The closing costs (often 2-3 percent of the loan amount) are typically lower and, even though your rate of interest is more on a home equity loan, the interest paid will be tax deductible.

You'll have to provide salary documentation and have a positive credit score to qualify for a second mortgage. A home appraisal will be needed to determine the property's market value. To check on your home equity/second mortgage options, call us at 2817780805.

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