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 home equity loan is a fixed rate or adjustable-rate loan that uses your home equity as collateral. You borrow a certain amount to be repaid in monthly payments over a set time frame, similar to first mortgage. A home equity loan also can be called a second mortgage.
Getting the Loan
The process for a home equity loan is similar to getting your current mortgage loan. Some differences are though, that the interest rate with a home equity loan is generally more (with tax-deductible interest) with smaller closing costs.
If you would like to qualify for a second mortgage, your credit needs to be in good standing and you need to be able to document your salary. To figure out your home's current value, your lender will require a home appraisal. To discuss your home equity/second mortgage choices, contact 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.