What is a Home Equity Loan?
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 your home equity is called a "home equity loan." You'll repay your loan over an agreed time period by making payments monthly, like with your first mortgage loan. The terms "home equity loan" and "second mortgage" might be used interchangeably.
Home Equity Loan Specifics
You will be familiar with the process as it is a lot like the process toward your current mortgage. The closing costs (usually 2-3& of the loan amount) are typically smaller and, although the interest rate is more on a home equity loan, the interest will be tax deductible.
If you'd like to qualify for a second mortgage, you need to have a positive credit score and you need to be able to provide documentation of your salary. A home appraisal will be required to calculate the property's market value. To discuss your home equity/second mortgage loan options, contact us at 214-300-8756.
Have questions about your home equity? Call us at 214-300-8756. It's our job to answer home equity loan questions, so we're happy to help!