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 borrow a certain amount to be repaid in monthly payments over a set time frame, similar to original mortgage agreement. The terms "home equity loan" and "second mortgage" may be used interchangeably.
You will be familiar with the process as it's much like getting your current mortgage. Your closing costs (often 2-3 percent of the loan amount) are typically lower and, although your rate of interest is higher on a home equity loan, the interest can be tax deductible.
To qualify for a second mortgage, your credit has to be in good standing and you should be able to document your income. To determine your home's current value, your lending institution will require a home appraisal. To discuss your home equity choices, contact us at 9094671090.
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