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, your lender will ask for an appraisal of your home. To check on your home equity loan choices, call us at (678) 539-8100.
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!