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 or adjustable rate loan that uses your home equity as collateral. You borrow a certain amount to be repaid monthly over a set time frame, just as you have done with your first mortgage. A home equity loan also can be referred to as a second mortgage.
Getting your first mortgage is a process similar to that of a home equity loan. Your closing costs (usually two to three percent of the loan amount) are usually lower and, even though your rate of interest is larger on a home equity loan, the interest is tax deductible.
You will have to provide income verification and have a positive credit score to qualify for a second mortgage. A home appraisal will be required to calculate the property's market value. To check on your home equity/second mortgage options, contact us at 972.798.2110.
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