What is a Home Equity Loan?
Have you considered tapping into your home equity to send a child off to college, or remodel your home? A fixed- or adjustable-rate loan secured by the home equity you have built up is called a "home equity loan." Similar to your first mortgage, you can borrow a certain sum of money to be repaid monthly over a certain period of time. People often use the phrases "home equity loan" and "second mortgage" to mean the same thing.
Home Equity Loan Specifics
The steps toward a home equity loan are similar to getting your current mortgage. You'll be happy to learn the closing costs are smaller with a home equity loan, and even though there is a larger interest rate than a first mortgage loan, the interest may be deducted from your taxes.
You will have to document your income and have good credit to qualify for a second mortgage. A home appraisal is needed to calculate the home's market value. To talk about your home equity loan choices, contact us at (909) 467-1090.