Tapping into Your Home Equity
Have you considered tapping into your home equity to send a child off to college, or remodel your home? A home equity loan is a fixed-rate or adjustable-rate loan that is secured by the equity in your home. Similar to your first mortgage, you borrow a particular sum of money to be repaid monthly over a certain period of time. A home equity loan may also be referred to as a second mortgage.
Getting the Loan
Getting your current mortgage loan is a process similar to that of a home equity loan. The closing costs (often two to three percent of the loan amount) are generally smaller and, even though your rate of interest is more on a home equity loan, the interest will be tax deductible.
To qualify for a second mortgage, you will need a positive credit score and you need to be able to provide documentation of your income. To figure out your home's market value, your lender will require a home appraisal. To talk about your home equity loan choices, contact us at (512) 422-9036.
Have questions about your home equity? Call us at (512) 422-9036. Ann Jones (512) 422-9036 answers questions about home equity every day.
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