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 secured by the home equity you have built up is called a "home equity loan." As with your first mortgage, you borrow a particular amount to be paid back monthly over a certain period of time. A home equity loan also can be referred to as a second mortgage.
You will be familiar with the process as it is much like the process toward your first mortgage. Your closing costs (often 2-3& of the loan amount) are generally smaller and, even though your rate of interest is bigger on a home equity loan, the interest will be tax deductible.
To qualify for a second mortgage, your credit needs to be in good standing and you must be able to verify your income. A home appraisal will be necessary to determine the property's market value. To talk about your home equity choices, contact us at 9727982110.
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