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? A fixed- or adjustable-rate loan that is secured by your home equity is called a "home equity loan." As with your first mortgage, you can borrow a particular amount to be paid back monthly over a certain period of time. You can use the terms "home equity loan" and "second mortgage" interchangeably.

Getting Your Home Equity Loan

You'll be accustomed to the process as it is a lot like getting your current mortgage. You will be pleased to learn the closing costs are lower with a home equity loan, and although there is a bigger interest rate than a first mortgage, the interest may be deducted on your taxes.

To qualify for a second mortgage, you need to have a reasonable credit score and you should be able to verify your income. To determine your home's market value, your lending institution will ask for a home appraisal. To talk about your home equity/second mortgage loan options, contact us at (281) 778-0805.

Have questions about your home equity? Call us at (281) 778-0805. It's our job to answer home equity loan questions, so we're happy to help!

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