What is a Home Equity Loan?
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Do you need to tap into your home's equity to pay for a home remodeling project or to pay off a credit card? With a home equity loan, your fixed or adjustable rate loan is secured by the equity in your home. You'll repay the loan over an agreed time period by making payments monthly, just like your first mortgage loan. The terms "home equity loan" and "second mortgage" are often used interchangeably.
Home Equity Loan Specifics
You will be familiar with the process as it is a lot like the process toward your current mortgage. Some distinctions are though, that the rate of interest with a home equity loan is generally higher (with tax-deductible interest) with smaller closing costs.
You will have to provide proof of your income and have a reasonable credit score to qualify for a home equity loan. To determine your home's market value, your lender will ask for a home appraisal. To talk about your home equity choices, contact us at 281-542-7392.
Have questions about your home equity? Call us at 281-542-7392. Liberty Mortgage answers questions about home equity every day.