Tapping into Your Home Equity

Perhaps you are considering tapping into your home equity to renovate your kitchen, or take care of the balance on a credit card. A home equity loan is a fixed rate or adjustable rate loan that uses the equity in your home as collateral. You will repay this loan over an agreed time period by making monthly payments, just like your first mortgage loan. You can use the terms "home equity loan" and "second mortgage" to mean the same thing.

Getting the Loan

The process for a home equity loan is similar to getting your existing mortgage loan. Some distinctions are though, that the interest rate with a home equity loan is typically more (with tax-deductible interest) with lower closing costs.

You will have to provide income documentation and have good credit to qualify for a home equity loan. A home appraisal is required to calculate the home's current market value. To check on your home equity/second mortgage loan choices, call us at 5129169955.

Have questions about your home equity? Call us at 5129169955. It's our job to answer home equity loan questions, so we're happy to help!