What is a Home Equity Loan?

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 the home equity you have built up is called a "home equity loan." Similar to your first mortgage, you'll borrow a particular amount to be paid back monthly over a certain period of time. People often use the terms "home equity loan" and "second mortgage" to mean the same thing.

Getting the Loan

The steps toward a home equity loan are similar to getting your first mortgage loan. Some distinctions are though, that the rate of interest with a home equity loan is usually more (with tax deductible interest) with smaller closing costs.

If you would like to qualify for a second mortgage, your credit must be in good standing and you need to be able to document your income. To assess your home's current value, your lending institution will ask for an appraisal of your home. To talk about your home equity/second mortgage loan choices, call us at (281) 778-0805.

Have questions about your home equity? Call us at (281) 778-0805. We answer home equity loan questions questions all the time.