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 fixed- or adjustable-rate loan that is secured by the home equity you have built up is called a "home equity loan." You borrow a sum to be paid back in monthly payments during a set time frame, much like your original mortgage loan. The terms "home equity loan" and "second mortgage" can be used interchangeably.
Home Equity Loan Specifics
The process for a home equity loan is similar to getting your current mortgage loan. The closing costs (usually 2-3& of the loan amount) are typically lower and, although the interest rate is bigger on a home equity loan, the interest will be tax deductible.
If you would like to qualify for a second mortgage, you need to have a reasonable credit score and you should be able to provide documentation of your income. A home appraisal is required to determine the home's current market value. 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 every day.