What is a Home Equity Loan?

Do you want 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, a fixed or adjustable rate loan is secured by your home equity. Similar to your first mortgage, you can borrow a specific sum of money to be repaid monthly over a certain period of time. People often use the terms "home equity loan" and "second mortgage" to mean the same thing.

Getting Your Home Equity Loan

Getting your current mortgage loan is a process similar to that of a home equity loan. Some differences are though, that the rate of interest with a home equity loan is usually more (with tax deductible interest) with lower closing costs.

If you'd like to qualify for a second mortgage, your credit needs to be in good standing and you must be able to provide documentation of your income. A home appraisal will be required to calculate the home's market value. To check on your home equity/second mortgage loan choices, call us at 8102292820.

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