Home Equity Loans

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 is secured by the equity in your home. You borrow a sum to be repaid monthly over a set time frame, similar to original mortgage loan. The terms "home equity loan" and "second mortgage" are often used interchangeably.

Home Equity Loan Specifics

You will be familiar with the process as it's a lot like the process toward your existing mortgage. Your closing costs (often 2-3 percent of the loan amount) are typically lower and, even though the interest rate is larger on a home equity loan, the interest will be tax deductible.

If you would like to qualify for a second mortgage, you will need a positive credit score and you should be able to document your income. A home appraisal is necessary to assess the home's market value. To talk about your home equity loan options, call us at 8102292820.

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