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." You'll repay your loan over an agreed time period by making payments monthly, just like your original mortgage loan. A home equity loan also can be called a second mortgage.
Home Equity Loan Specifics
The process for a home equity loan is similar to getting your first mortgage. You will be pleased to know the closing costs are smaller with a home equity loan, and even though there is a higher interest rate than a first mortgage, the interest may be deducted on your taxes.
You'll have to document your salary and have good credit to qualify for a second mortgage. To assess your home's current value, your lender will ask for an appraisal of your home. To explore your home equity loan choices, call 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.