What is a Home Equity Loan?
Do you want to tap into your home's equity to pay for a home remodeling project or to pay off 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." Similar to your first mortgage, you'll borrow a certain amount to be repaid monthly over a period of time. People often use the terms "home equity loan" and "second mortgage" to mean the same thing.
Getting Your Home Equity Loan
The process for a home equity loan is similar to getting your current mortgage. Some differences are though, that the rate of interest with a home equity loan is generally higher (with tax deductible interest) with smaller closing costs.
You will have to document your salary and have a positive credit score to qualify for a second mortgage. A home appraisal is needed to determine the property's current market value. To talk about your home equity/second mortgage options, contact us at 214-300-8756.
Have questions about your home equity? Call us at 214-300-8756. We answer home equity loan questions questions every day.