Home Equity Loan
Do you need to tap into your home's equity to pay for a home remodeling project or to pay off a credit card? In a home equity loan, a fixed or adjustable rate loan is secured by the equity in your home. As with your first mortgage, you can borrow a certain sum of money to be paid back monthly over a certain period of time. The terms "home equity loan" and "second mortgage" can be used interchangeably.
Getting Your Home Equity Loan
You will be comfortable with the process as it's much like getting your current mortgage. The closing costs (usually two to three percent of the loan amount) are usually smaller and, although your interest rate is bigger on a home equity loan, the interest paid is tax deductible.
You'll have to provide income documentation and have a reasonable credit score to qualify for a home equity loan. To figure out your home's market value, your lender will require a home appraisal. To talk about your home equity options, call us at 305-800-3863.
Have questions about your home equity? Call us at 305-800-3863. We answer home equity loan questions questions all the time.