What is a Home Equity Loan?

Do you want 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." As with your first mortgage, you'll borrow a particular amount to be repaid monthly over a certain period of time. People often use the phrases "home equity loan" and "second mortgage" interchangeably.

Getting the Loan

The process for a home equity loan is similar to getting your original mortgage. Your closing costs (often 2-3& of the loan amount) are usually smaller and, although the interest rate is more on a home equity loan, the interest can be tax deductible.

You'll have to provide income documentation and have good credit to qualify for a second mortgage. A home appraisal will be required to assess the home's current market value. To check on your home equity loan options, call us at 8557558700.

Have questions about your home equity? Call us at 8557558700. We answer home equity loan questions questions every day.