What is a Home Equity Loan?
Do you need 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, your fixed or adjustable rate loan is secured by your home equity. You will repay the loan over an agreed time period by making payments monthly, like with your original mortgage. You can use the phrases "home equity loan" and "second mortgage" to mean the same thing.
Getting the Loan
Getting your first mortgage is a similar routine to that of a home equity loan. Some distinctions are though, that the interest rate with a home equity loan is generally higher (with tax-deductible interest) with lower closing costs.
You'll have to provide proof of your income and have good credit to qualify for a second mortgage. To figure out your home's current value, your lender will ask for an appraisal of your home. To discuss your home equity/second mortgage options, call 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.