Home Equity Loans
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 the equity in your home. You'll repay your loan over an agreed time period by making monthly payments, just like with your first mortgage. The terms "home equity loan" and "second mortgage" might be used interchangeably.
Getting Your Home Equity Loan
Getting your current mortgage is a process similar to that of a home equity loan. You'll be happy to learn the closing costs are lower with a home equity loan, and even though there is a bigger interest rate than a first mortgage, the interest may be deducted on your taxes.
In order to qualify for a second mortgage, you need to have a reasonable credit score and you should be able to provide documentation of your salary. To determine your home's market value, your lending institution will require a home appraisal. To talk about your home equity/second mortgage options, contact us at (909) 467-1090.