Home Equity Loans

Do you need to tap into your home's equity to pay for a home remodeling project or to pay off a credit card? A home equity loan is a fixed-rate or adjustable rate loan that uses the equity in your home as collateral. You borrow a sum to be paid back monthly during a set time frame, just as you have done with your first mortgage agreement. People often use the phrases "home equity loan" and "second mortgage" interchangeably.

Home Equity Loan Specifics

The steps toward a home equity loan are similar to getting your existing mortgage loan. Some distinctions are though, that the interest rate with a home equity loan is typically higher (with tax-deductible interest) with lower closing costs.

You will have to provide income verification and have good credit to qualify for a second mortgage. A home appraisal is required to calculate the home's market value. To discuss your home equity/second mortgage loan choices, contact us at 8102292820.

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