Home Equity Loans
Do you want to tap into your home's equity to pay for a home remodeling project or to pay off a credit card? With a home equity loan, a fixed or adjustable rate loan is secured by your home equity. You borrow a lump sum of money to be repaid monthly over a set time frame, much like your original mortgage loan. The terms "home equity loan" and "second mortgage" are often used interchangeably.
Getting Your Home Equity Loan
You'll be familiar with the process as it's much like getting your current mortgage. The closing costs (often 2-3 percent of the loan amount) are usually lower and, although your rate of interest is higher 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 is necessary to assess the home's current market value. To explore your home equity/second mortgage choices, call us at (909) 467-1090.