What is a Home Equity Loan?

Do you need to tap into your home's equity to pay for a home remodeling project or to pay off a credit card? With a home equity loan, your fixed or adjustable rate loan is secured by your home equity. You borrow a sum of money to be repaid with monthly payments during a set time frame, similar to first mortgage agreement. A home equity loan at times is also referred to as a second mortgage.

Getting the Loan

Getting your current mortgage is a process similar to that of a home equity loan. The closing costs (usually 2-3& of the loan amount) are usually lower and, although the interest rate is bigger on a home equity loan, the interest paid can be tax deductible.

To qualify for a second mortgage, you will need a reasonable credit score and you need to be able to verify your income. To determine your home's current value, your lending institution will ask for an appraisal of your home. To talk about your home equity loan options, call us at (305) 596-7672.

Have questions about your home equity? Call us at (305) 596-7672. It's our job to answer home equity loan questions, so we're happy to help!