Home Equity Loans
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 or adjustable rate loan that is secured by your home equity. Similar to your first mortgage, you can borrow a particular amount 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.
Getting the Loan
Getting your current mortgage loan is a similar routine to that of a home equity loan. The closing costs (usually 2-3& of the loan amount) are usually lower and, although the rate of interest is bigger on a home equity loan, the interest is tax deductible.
In order to qualify for a second mortgage, you must have a reasonable credit score and you must be able to provide documentation of your income. To figure out your home's current value, your lender will ask for a home appraisal. To discuss your home equity/second mortgage choices, call 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!