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. A home equity loan is a fixed or adjustable-rate loan that uses your home equity as collateral. You borrow a sum of money to be paid back monthly during a set time frame, much like your first mortgage. The terms "home equity loan" and "second mortgage" are often used interchangeably.

Getting Your Home Equity Loan

The steps toward a home equity loan are similar to getting your existing mortgage. You will be pleased to know that the closing costs are smaller with this loan, and even though there is a bigger interest rate than a traditional mortgage, the interest may be deducted on your taxes.

You will have to provide proof of your income and have good credit to qualify for a second mortgage. To determine your home's market value, your lending institution will require a home appraisal. To discuss your home equity loan choices, contact us at 8102292820.

Have questions about your home equity? Call us at 8102292820. We answer home equity loan questions questions every day.