Home Equity Loans
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." You borrow a lump sum to be repaid in monthly payments over a set period of time, similar to original mortgage. You can use the terms "home equity loan" and "second mortgage" interchangeably.
Home Equity Loan Specifics
Getting your first mortgage loan is a similar process to that of a home equity loan. You will be happy to know the closing costs are smaller with a home equity loan, and although there is a bigger interest rate than a first mortgage loan, the interest can be deducted on your taxes.
In order to qualify for a second mortgage, your credit has to be in good standing and you need to be able to document your income. To figure out your home's current value, your lender will ask for an appraisal of your home. To check on your home equity choices, contact us at 214-300-8756.
Have questions about your home equity? Call us at 214-300-8756. F&T Mortgage, Inc. NMLS # 168839 (www.nmlsconsumeraccess.org) answers questions about home equity every day.