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? A home equity loan is a fixed or adjustable rate loan that uses your home equity as collateral. As with your first mortgage, you borrow a certain sum of money to be paid back monthly over a period of time. You can use the phrases "home equity loan" and "second mortgage" to mean the same thing.
Getting the Loan
Getting your first mortgage is a similar process to that of a home equity loan. You'll be happy to learn that the closing costs are smaller with a home equity loan, and although there is a higher interest rate than a first mortgage, the interest may be deducted on your taxes.
You'll have to provide salary documentation and have good credit to qualify for a second mortgage. A home appraisal is required to determine the home's market value. To talk about your home equity loan options, call us at 866-300-1550.
Have questions about your home equity? Call us at 866-300-1550. It's our job to answer home equity loan questions, so we're happy to help!