Tap into Your Home Equity

Do you want to tap into your home's equity to pay for a home remodeling project or to pay off a credit card? In a home equity loan, a fixed or adjustable rate loan is secured by the equity in your home. You borrow a certain amount to be paid back monthly over a set time frame, just like your first mortgage agreement. The terms "home equity loan" and "second mortgage" may be used interchangeably.

Getting the Loan

The process for a home equity loan is similar to getting your original mortgage loan. You will be pleased to know the closing costs are smaller with this loan, and although there is a bigger interest rate than a first mortgage loan, the interest may be deducted from your taxes.

In order to qualify for a second mortgage, you must have a positive credit score and you should be able to document your income. To determine your home's current value, your lending institution will ask for an appraisal of your home. To check on your home equity loan options, 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.