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? A home equity loan is a fixed rate or adjustable rate loan that is secured by your home equity. You borrow a lump sum of money to be repaid with monthly payments over a set time frame, much like your first mortgage loan. A home equity loan might also be called a second mortgage.
Home Equity Loan Specifics
The steps toward a home equity loan are similar to getting your original mortgage. Your closing costs (usually 2-3& of the loan amount) are generally lower and, even though your rate of interest is more on a home equity loan, the interest can be tax deductible.
If you would like to qualify for a second mortgage, your credit has to be in good standing and you should be able to provide documentation of your income. To figure out your home's current value, your lender will ask for a home appraisal. To discuss your home equity/second mortgage options, call us at 305-800-3863.
Have questions about your home equity? Call us at 305-800-3863. Refresh Funding answers questions about home equity every day.