What is a Home Equity Loan?
Have you considered tapping into your home equity to send a child off to college, or remodel your home? A fixed- or adjustable-rate loan secured by the home equity you have built up is called a "home equity loan." You borrow a certain amount of money to be repaid with monthly payments during a set period of time, similar to first mortgage agreement. The terms "home equity loan" and "second mortgage" are often used interchangeably.
Home Equity Loan Specifics
Getting your current mortgage is a process similar to that of a home equity loan. Some distinctions are though, that the interest rate with a home equity loan is usually higher (with tax-deductible interest) with smaller closing costs.
You'll have to document your salary and have a reasonable credit score to qualify for a second mortgage. A home appraisal will be needed to calculate the home's current market value. To explore your home equity/second mortgage loan choices, 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!