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 home equity loan is a fixed-rate or adjustable-rate loan that is secured by the equity in your home. Similar to your first mortgage, you borrow a particular amount to be paid back monthly over a certain period of time. A home equity loan might also be referred to as a second mortgage.

Getting Your Home Equity Loan

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

You'll have to provide income documentation and have good credit to qualify for a second mortgage. To determine your home's market value, your lending institution will require a home appraisal. To check on your home equity/second mortgage choices, contact us at (281) 778-0805.

Have questions about your home equity? Call us at (281) 778-0805. 1st Credential Mortgage Inc answers questions about home equity every day.

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Want to know if a home is still on the market, or if the price has changed? We can help. Simply fill out the information below and with no obligation to you we'll get back to you with your requested information. We guarantee your privacy.

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