Have you considered tapping into your home equity to send a child off to college, or remodel your home? In a home equity loan, a fixed or adjustable rate loan is secured by your home equity. Similar to your first mortgage, you'll borrow a specific amount to be repaid monthly over a period of time. The terms "home equity loan" and "second mortgage" are often used interchangeably.
The steps toward a home equity loan are similar to getting your existing mortgage. You'll be happy to learn the closing costs are smaller with a home equity loan, and even though there is a bigger interest rate than a traditional mortgage loan, the interest may be deducted from your taxes.
In order to qualify for a second mortgage, you will need a reasonable credit score and you should be able to verify your income. To determine your home's current value, your lending institution will require a home appraisal. To discuss your home equity/second mortgage loan options, call us at 972.798.2110.
Looking to refinance your home? Fill out the following form to get a fast quote from us.