Perhaps you are considering tapping into your home equity to renovate your kitchen, or take care of the balance on a credit card. A fixed- or adjustable-rate loan that is secured by your home equity is called a "home equity loan." Similar to your first mortgage, you can borrow a specific sum of money to be repaid monthly over a certain period of time. The terms "home equity loan" and "second mortgage" are often used interchangeably.
Getting your current mortgage is a process similar to that of a home equity loan. Some differences are though, that the rate of interest with a home equity loan is usually more (with tax deductible interest) with lower closing costs.
In order to qualify for a second mortgage, you must have a reasonable credit score and you need to be able to verify your salary. A home appraisal will be needed to assess the home's current market value. To discuss your home equity options, contact us at 972.798.2110.
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