Tapping into Your Home Equity

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 the equity in your home. You borrow a certain amount of money to be repaid monthly during a set period of time, much like your first mortgage agreement. People often use the terms "home equity loan" and "second mortgage" interchangeably.

Home Equity Loan Specifics

Getting your first mortgage is a process similar to that of a home equity loan. You'll be pleased to learn the closing costs are smaller with this loan, and even though there is a higher interest rate than a traditional mortgage loan, the interest may be deducted from your taxes.

You will have to provide income verification and have good credit to qualify for a second mortgage. To figure out your home's market value, your lender will ask for an appraisal of your home. To talk about your home equity options, 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.

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