What is a Home Equity Loan?

Perhaps you are considering tapping into your home equity to renovate your kitchen, or take care of the balance on a credit card. A home equity loan is a fixed-rate or adjustable rate loan that is secured by your home equity. Similar to 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" might be used interchangeably.

Home Equity Loan Specifics

Getting your current mortgage is a process similar to that of a home equity loan. You will be pleased to know the closing costs are smaller with this loan, and even though there is a bigger interest rate than a traditional mortgage, the interest can be deducted from your taxes.

You will have to provide salary documentation and have good credit to qualify for a second mortgage. To figure out your home's current value, your lender will require a home appraisal. To check on your home equity choices, call us at 8557558700.

Have questions about your home equity? Call us at 8557558700. We answer home equity loan questions questions all the time.