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. With a home equity loan, your fixed or adjustable rate loan is secured by the equity in your home. Similar to your first mortgage, you borrow a certain amount to be repaid monthly over a certain period of time. A home equity loan at times is also called a second mortgage.
Getting Your Home Equity Loan
Getting your first mortgage loan is a similar routine to that of a home equity loan. Your closing costs (usually 2-3 percent of the loan amount) are typically lower and, although your rate of interest is larger on a home equity loan, the interest paid can be tax deductible.
In order to qualify for a second mortgage, you need to have a positive credit score and you need to be able to provide documentation of your income. To figure out your home's market value, your lending institution will ask for a home appraisal. To check on your home equity/second mortgage choices, 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.