Perhaps you are considering tapping into your home equity to renovate your kitchen, or take care of the balance on a credit card. In a home equity loan, your fixed or adjustable rate loan is secured by your home equity. You will repay this loan over an agreed time period by making payments monthly, like your first mortgage. A home equity loan may also be referred to as a second mortgage.
You'll be familiar with the process as it's a lot like the process toward your existing mortgage. Your closing costs (often 2-3 percent of the loan amount) are generally smaller and, even though your interest rate is larger on a home equity loan, the interest paid can be tax deductible.
You will have to provide salary verification and have good credit to qualify for a home equity loan. To figure out your home's market value, your lender will require an appraisal of your home. To discuss your home equity loan choices, call us at 800-252-6633.
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