What is a Home Equity Loan?
Do you need to tap into your home's equity to pay for a home remodeling project or to pay off 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 to be paid back monthly during a set period of time, similar to original mortgage agreement. You can use the phrases "home equity loan" and "second mortgage" to mean the same thing.
Getting the Loan
The process for a home equity loan is similar to getting your current mortgage. The closing costs (often 2-3 percent of the loan amount) are typically smaller and, although the interest rate is bigger on a home equity loan, the interest is tax deductible.
If you would like to qualify for a second mortgage, your credit must be in good standing and you must be able to provide documentation of your income. A home appraisal is needed to assess the property's current market value. To discuss your home equity loan options, call us at 214-300-8756.
Have questions about your home equity? Call us at 214-300-8756. We answer home equity loan questions questions every day.