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 home equity loan is a fixed or adjustable-rate loan that uses the equity in your home as collateral. You will repay this loan over an agreed period of time by making monthly payments, like with your first mortgage loan. A home equity loan also can be called a second mortgage.
Home Equity Loan Specifics
You will be accustomed to the process as it's a lot like the process toward your existing mortgage. Your closing costs (usually 2-3 percent of the loan amount) are usually lower and, even though the rate of interest is larger on a home equity loan, the interest is tax deductible.
You'll have to document your salary and have good credit to qualify for a home equity loan. A home appraisal is needed to determine the home's market value. To check on your home equity/second mortgage options, call us at (909) 467-1090.