What is a Home Equity Loan?

Have you considered tapping into your home equity to send a child off to college, or remodel your home? With a home equity loan, your fixed or adjustable rate loan is secured by your home equity. As with your first mortgage, you can borrow a specific sum of money to be repaid monthly over a certain period of time. You can 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. Your closing costs (often 2-3 percent of the loan amount) are generally smaller and, although the rate of interest is higher on a home equity loan, the interest can be tax deductible.

In order to qualify for a second mortgage, your credit must be in good standing and you should be able to document your income. To determine your home's current value, your lender will require an appraisal of your home. To check on your home equity options, call us at 8102292820.

Have questions about your home equity? Call us at 8102292820. ADVISORY MORTGAGE answers questions about home equity every day.