What is a Home Equity Loan?
Perhaps you are considering tapping into your home equity to renovate your kitchen, or take care of the balance on a credit card. A home equity loan is a fixed rate or adjustable-rate loan that uses the equity in your home as collateral. You'll repay the loan over an agreed time period by making monthly payments, like with your original mortgage loan. The terms "home equity loan" and "second mortgage" might be used interchangeably.
Getting Your Home Equity Loan
You'll be comfortable with the process as it's much like getting your first mortgage. The closing costs (usually 2-3& of the loan amount) are generally lower and, even though your rate of interest is bigger on a home equity loan, the interest will be tax deductible.
In order to qualify for a second mortgage, you will need a reasonable credit score and you need to be able to verify your income. To assess your home's current value, your lending institution will require a home appraisal. To discuss your home equity options, call us at (909) 467-1090.