Perhaps you are considering tapping into your home equity to renovate your kitchen, or take care of the balance on a credit card. A home equity loan is a fixed-rate or adjustable rate loan that uses your home equity as collateral. You borrow a sum to be paid back with monthly payments during a set time frame, like you first mortgage agreement. The terms "home equity loan" and "second mortgage" are often used interchangeably.
The steps toward a home equity loan are similar to getting your first mortgage. You'll be happy to learn the closing costs are smaller with a home equity loan, and even though there is a higher interest rate than a traditional mortgage loan, the interest may be deducted from your taxes.
You'll have to provide salary documentation and have good credit to qualify for a home equity loan. A home appraisal is required to assess the property's current market value. To check on your home equity/second mortgage loan options, call us at 866-300-1550.
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