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 is secured by your home equity. You'll repay your loan over an agreed time period by making payments monthly, like with your first mortgage loan. A home equity loan also can be referred to as a second mortgage.
Getting the Loan
Getting your current mortgage loan is a process similar to that of a home equity loan. You will be happy to learn the closing costs are lower with a home equity loan, and even though there is a higher interest rate than a traditional mortgage, the interest may be deducted from your taxes.
You'll have to provide salary verification and have a reasonable credit score to qualify for a second mortgage. A home appraisal will be required to calculate the property's current market value. To check on your home equity/second mortgage choices, contact us at (909) 467-1090.