Tapping into Your Home Equity
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 that is secured by the home equity you have built up is called a "home equity loan." You borrow a lump sum to be paid back with monthly payments during a set period of time, like you first mortgage loan. You can use the phrases "home equity loan" and "second mortgage" to mean the same thing.
Home Equity Loan Specifics
The steps toward a home equity loan are similar to getting your first mortgage loan. Your closing costs (often two to three percent of the loan amount) are typically smaller and, even though your rate of interest is more on a home equity loan, the interest paid is tax deductible.
You will have to provide salary documentation and have good credit to qualify for a home equity loan. A home appraisal is necessary to determine the home's current market value. To explore your home equity/second mortgage options, call us at 877-310-6200.
Have questions about your home equity? Call us at 877-310-6200. It's our job to answer home equity loan questions, so we're happy to help!
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