What is a Home Equity Loan?

Perhaps you are considering tapping into your home equity to renovate your kitchen, or take care of the balance on a credit card. A home equity loan is a fixed or adjustable-rate loan that is secured by your home equity. You will repay the loan over an agreed time period by making monthly payments, just like with your first mortgage. A home equity loan also can be called a second mortgage.

Getting Your Home Equity Loan

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

In order to qualify for a second mortgage, you need to have a reasonable credit score and you need to be able to provide documentation of your income. To figure out your home's current value, your lender will ask for a home appraisal. To talk about your home equity/second mortgage loan choices, contact us at 2817780805.

Have questions about your home equity? Call us at 2817780805. We answer home equity loan questions questions all the time.