Tapping into Your Home Equity
Have you considered tapping into your home equity to send a child off to college, or remodel your home? A home equity loan is a fixed rate or adjustable rate loan that is secured by your home equity. Similar to your first mortgage, you borrow a particular sum of money to be paid back monthly over a certain period of time. You can use the terms "home equity loan" and "second mortgage" to mean the same thing.
Home Equity Loan Specifics
Getting your first mortgage loan is a process similar to that of a home equity loan. Your closing costs (usually 2-3 percent of the loan amount) are usually lower and, although your rate of interest is bigger on a home equity loan, the interest paid is tax deductible.
In order to qualify for a second mortgage, you must have a positive credit score and you must be able to verify your income. To assess your home's market value, your lender will require an appraisal of your home. To explore your home equity choices, call us at (888) 478-9991.