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 your home equity is called a "home equity loan." You'll repay your loan over an agreed period of time by making monthly payments, like your first mortgage. People often use the terms "home equity loan" and "second mortgage" interchangeably.
Getting the Loan
The steps toward a home equity loan are similar to getting your current mortgage. Some differences are though, that the rate of interest with a home equity loan is usually more (with tax-deductible interest) with lower closing costs.
You will have to provide salary documentation and have a positive credit score to qualify for a home equity loan. To figure out your home's current value, your lending institution will ask for an appraisal of your home. To discuss your home equity/second mortgage options, 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.