What is a 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. In a home equity loan, a fixed or adjustable rate loan is secured by your home equity. You will repay the loan over an agreed time period by making monthly payments, like with your original mortgage loan. A home equity loan can also be referred to as a second mortgage.

Getting Your Home Equity Loan

You'll be accustomed to the process as it's much like the process toward your current mortgage. Some differences are though, that the interest rate with a home equity loan is usually higher (with tax-deductible interest) with smaller closing costs.

You will have to provide salary documentation and have good credit to qualify for a second mortgage. To figure out your home's current value, your lender will require a home appraisal. To explore 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 all the time.