Home Equity Loans
Do you want to tap into your home's equity to pay for a home remodeling project or to pay off a credit card? A fixed- or adjustable-rate loan that is secured by your home equity is called a "home equity loan." You will repay your loan over an agreed period of time by making monthly payments, just like your original mortgage loan. A home equity loan also can be called a second mortgage.
Home Equity Loan Specifics
You'll be accustomed to the process as it's much like the process toward your first mortgage. Your closing costs (often 2-3 percent of the loan amount) are typically smaller and, even though your rate of interest is higher on a home equity loan, the interest paid will be tax deductible.
You will have to provide salary documentation and have good credit to qualify for a home equity loan. A home appraisal is needed to assess the property's current market value. To talk about your home equity/second mortgage options, contact 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!