What is a Home Equity Loan?
Perhaps you are considering tapping into your home equity to renovate your kitchen, or take care of the balance on a credit card. A home equity loan is a fixed rate or adjustable rate loan that uses your home equity as collateral. You borrow a sum of money to be repaid with monthly payments during a set time frame, similar to original mortgage. The terms “home equity loan” and “second mortgage” are often used interchangeably.
Getting Your Home Equity Loan
Getting your first mortgage is a process similar to that of a home equity loan. The closing costs (often 2-3 percent of the loan amount) are usually smaller and, although your interest rate is larger on a home equity loan, the interest can be tax deductible.
You’ll have to provide salary verification and have good credit to qualify for a second mortgage. To figure out your home’s current value, our lender will ask for an appraisal of your home.
Have questions about your home equity? Call us at (678) 539-8100. It’s our job to answer home equity loan questions, so we’re happy to help!