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 your home equity. You'll repay the loan over an agreed time period by making payments monthly, like with your original mortgage loan. People often use the terms "home equity loan" and "second mortgage" interchangeably.
Getting Your Home Equity Loan
The steps toward a home equity loan are similar to getting your current mortgage loan. Your closing costs (often 2-3 percent of the loan amount) are generally smaller and, even though your interest rate is higher on a home equity loan, the interest is tax deductible.
To qualify for a second mortgage, you will need a positive credit score and you need to be able to document your salary. To figure out your home's current value, your lending institution will ask for an appraisal of your home. To talk about your home equity/second mortgage loan choices, call us at (909) 467-1090.