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. With a home equity loan, your fixed or adjustable rate loan is secured by your home equity. You borrow a lump sum to be repaid with monthly payments during a set time frame, like you original mortgage agreement. A home equity loan also can be referred to as a second mortgage.
Getting the Loan
The process for a home equity loan is similar to getting your existing mortgage loan. The closing costs (usually two to three percent of the loan amount) are typically lower and, even though the rate of interest is more on a home equity loan, the interest paid will be tax deductible.
In order to qualify for a second mortgage, your credit has to be in good standing and you should be able to verify your income. To determine your home's market value, your lender will require a home appraisal. To check on your home equity choices, call 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!