What is a Home Equity Loan?
Do you need to tap into your home's equity to pay for a home remodeling project or to pay off 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'll repay your loan over an agreed time period by making monthly payments, like with your original mortgage loan. People often use the phrases "home equity loan" and "second mortgage" to mean the same thing.
Getting Your Home Equity Loan
The steps toward a home equity loan are similar to getting your original mortgage. You will be happy to learn that the closing costs are lower with this loan, and although there is a bigger interest rate than a first mortgage, the interest can be deducted on your taxes.
If you'd like to qualify for a second mortgage, you must have a reasonable credit score and you must be able to provide documentation of your income. A home appraisal is needed to assess the property's market value. To talk about your home equity choices, contact us at 310-379-5997.
Have questions about your home equity? Call us at 310-379-5997. It's our job to answer home equity loan questions, so we're happy to help!