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 fixed- or adjustable-rate loan secured by the home equity you have built up is called a "home equity loan." As with your first mortgage, you can borrow a specific sum of money to be paid back monthly over a certain period of time. People often use the phrases "home equity loan" and "second mortgage" interchangeably.

Getting Your Home Equity Loan

Getting your first mortgage loan is a process similar to that of a home equity loan. Your closing costs (often 2-3 percent of the loan amount) are typically lower and, although your rate of interest is bigger on a home equity loan, the interest will be tax deductible.

In order to qualify for a second mortgage, your credit needs to be in good standing and you need to be able to document your income. A home appraisal will be necessary to calculate the property's current market value. To explore your home equity/second mortgage loan options, contact us at 877-310-6200.

Have questions about your home equity? Call us at 877-310-6200. Mario Vega answers questions about home equity every day.