Tapping into Your Home Equity
Have you considered tapping into your home equity to send a child off to college, or remodel your home? A home equity loan is a fixed rate or adjustable rate loan that is secured by your home equity. Similar to your first mortgage, you can borrow a specific amount to be paid back monthly over a certain period of time. You can use the phrases "home equity loan" and "second mortgage" interchangeably.
Getting the Loan
You'll be comfortable with the process as it's a lot like the process toward your current mortgage. You will be happy to know the closing costs are smaller with a home equity loan, and although there is a larger interest rate than a first mortgage, the interest may be deducted from your taxes.
You'll have to document your income and have a positive credit score to qualify for a home equity loan. A home appraisal is necessary to determine the home's market value. To check on your home equity choices, 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.