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 fixed- or adjustable-rate loan secured by the home equity you have built up is called a "home equity loan." Similar to your first mortgage, you can borrow a certain sum of money to be repaid monthly over a certain period of time. A home equity loan also can be called a second mortgage.
Home Equity Loan Specifics
Getting your first mortgage loan is a similar process to that of a home equity loan. You will be happy to learn that the closing costs are smaller with a home equity loan, and although there is a higher 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 need to have a reasonable credit score and you should be able to document your salary. To assess your home's current value, your lender will ask for an appraisal of your home. To check on your home equity choices, contact us at 310-379-5997.
Have questions about your home equity? Call us at 310-379-5997. Real Property Finance answers questions about home equity every day.