Tapping into Your Home Equity
Have you considered tapping into your home equity to send a child off to college, or remodel your home? With a home equity loan, a fixed or adjustable rate loan is secured by your home equity. You borrow a certain amount to be paid back in monthly payments during a set time frame, much like your original mortgage. The terms "home equity loan" and "second mortgage" may be used interchangeably.
Getting Your Home Equity Loan
You will be familiar with the process as it's much like the process toward your current mortgage. You will be happy to know that the closing costs are lower with this loan, and although there is a higher interest rate than a first mortgage loan, the interest may be deducted from your taxes.
You'll have to document your salary and have a positive credit score to qualify for a home equity loan. To figure out your home's market value, your lending institution will ask for an appraisal of your home. To check on your home equity/second mortgage choices, call us at (909) 467-1090.