Do you need to tap into your home's equity to pay for a home remodeling project or to pay off a credit card? A fixed- or adjustable-rate loan secured by the home equity you have built up is called a "home equity loan." You will repay the loan over an agreed period of time by making payments monthly, like your original mortgage loan. A home equity loan is sometimes also called a second mortgage.
You will be familiar with the process as it is much like getting your existing mortgage. Some distinctions are though, that the interest rate with a home equity loan is typically more (with tax deductible interest) with lower closing costs.
If you would like to qualify for a second mortgage, you will need a reasonable credit score and you should be able to document your salary. To assess your home's market value, your lending institution will ask for an appraisal of your home. To check on your home equity/second mortgage loan options, contact us at 866-300-1550.
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