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? A fixed- or adjustable-rate loan that is secured by your home equity is called a "home equity loan." You will repay this loan over an agreed period of time by making monthly payments, like your original mortgage loan. You can use the terms "home equity loan" and "second mortgage" to mean the same thing.

Getting Your Home Equity Loan

Getting your first mortgage loan is a process similar to that of a home equity loan. Some distinctions are though, that the rate of interest with a home equity loan is usually higher (with tax deductible interest) with smaller closing costs.

If you would like to qualify for a second mortgage, your credit must be in good standing and you must be able to document your income. A home appraisal is needed to calculate the property's market value. To check on your home equity/second mortgage loan 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.