Have you considered tapping into your home equity to send a child off to college, or remodel your home? A fixed- or adjustable-rate loan secured by your home equity is called a "home equity loan." You will repay this loan over an agreed period of time by making payments monthly, just like your original mortgage loan. People often use the phrases "home equity loan" and "second mortgage" to mean the same thing.
Getting your first mortgage loan is a similar routine to that of a home equity loan. Some differences are though, that the interest rate with a home equity loan is generally higher (with tax deductible interest) with smaller closing costs.
You will have to document your income and have good credit to qualify for a home equity loan. To assess your home's market value, your lending institution will ask for a home appraisal. To check on your home equity/second mortgage options, contact us at 972.798.2110.
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