Home Equity Loan

Do you want 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 the home equity you have built up is called a "home equity loan." You borrow a lump sum to be repaid monthly during a set time frame, similar to original mortgage agreement. A home equity loan may also be referred to as a second mortgage.

Getting the Loan

You will be comfortable with the process as it's a lot like the process toward your current mortgage. You'll be happy to know the closing costs are lower with a home equity loan, and although there is a larger interest rate than a first mortgage, the interest can be deducted on your taxes.

If you would like to qualify for a second mortgage, your credit must be in good standing and you should be able to provide documentation of your salary. To assess your home's current value, your lender will ask for an appraisal of your home. To check on your home equity loan choices, call us at 877-310-6200.

Have questions about your home equity? Call us at 877-310-6200. Pacific Loan Brokers answers questions about home equity every day.