What is a 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 fixed- or adjustable-rate loan that is secured by your home equity is called a "home equity loan." Similar to your first mortgage, you borrow a specific amount to be repaid monthly over a period of time. A home equity loan at times is also called a second mortgage.
Getting Your Home Equity Loan
The steps toward a home equity loan are similar to getting your existing mortgage loan. You'll be happy to learn that the closing costs are smaller with a home equity loan, and although there is a larger interest rate than a first mortgage, the interest can be deducted from your taxes.
You'll have to document your income and have good credit to qualify for a home equity loan. To figure out your home's current value, your lending institution will require a home appraisal. To check on your home equity choices, 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.