Tap into Your Home Equity
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 home equity loan is a fixed or adjustable-rate loan that uses your home equity as collateral. You will repay the loan over an agreed period of time by making monthly payments, like your original mortgage. You can use the terms "home equity loan" and "second mortgage" interchangeably.
Getting the Loan
Getting your first mortgage loan is a similar routine to that of a home equity loan. The closing costs (often 2-3& of the loan amount) are typically lower and, even though the rate of interest is bigger on a home equity loan, the interest can be tax deductible.
You'll have to provide proof of your salary and have good credit to qualify for a home equity loan. To assess your home's market value, your lending institution will ask for an appraisal of your home. To talk about your home equity/second mortgage loan options, contact us at (909) 467-1090.