Home Equity Loans

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 rate or adjustable rate loan that uses your home equity as collateral. As with your first mortgage, you can borrow a specific amount to be repaid monthly over a certain period of time. A home equity loan also can be called a second mortgage.

Home Equity Loan Specifics

The process for a home equity loan is similar to getting your original mortgage. Your closing costs (usually two to three percent of the loan amount) are typically lower and, even though your rate of interest is more on a home equity loan, the interest can be tax deductible.

If you would like to qualify for a second mortgage, your credit has to be in good standing and you should be able to verify your income. To figure out your home's current value, your lender will ask for an appraisal of your home. 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.