What is a Home Equity Loan?
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 your home equity as collateral. As with your first mortgage, you can borrow a particular sum of money to be repaid monthly over a certain period of time. You can use the phrases "home equity loan" and "second mortgage" to mean the same thing.
Home Equity Loan Specifics
You'll be comfortable with the process as it's much like the process toward your current mortgage. Some differences are though, that the rate of interest with a home equity loan is typically more (with tax deductible interest) with lower closing costs.
You'll have to document your salary and have good credit to qualify for a second mortgage. A home appraisal is necessary to determine the home's market value. To explore your home equity/second mortgage options, call us at 310-379-5997.
Have questions about your home equity? Call us at 310-379-5997. We answer home equity loan questions questions every day.