Tap into Your Home Equity
Do you need to tap into your home's equity to pay for a home remodeling project or to pay off a credit card? A home equity loan is a fixed rate or adjustable rate loan that uses your home equity as collateral. As with your first mortgage, you borrow a specific sum of money to be repaid monthly over a certain period of time. You can use the phrases "home equity loan" and "second mortgage" to mean the same thing.
Getting the Loan
The steps toward a home equity loan are similar to getting your original mortgage loan. Some differences are though, that the rate of interest with a home equity loan is typically more (with tax deductible interest) with smaller closing costs.
If you'd like to qualify for a second mortgage, you will need a reasonable credit score and you need to be able to provide documentation of your income. A home appraisal is necessary to assess the home's market value. To discuss your home equity loan choices, 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.