Tap into Your Home Equity
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Have you considered tapping into your home equity to send a child off to college, or remodel your home? A fixed- or adjustable-rate loan secured by the home equity you have built up is called a "home equity loan." As with your first mortgage, you'll borrow a specific amount to be paid back monthly over a certain period of time. People often use the phrases "home equity loan" and "second mortgage" to mean the same thing.
Getting the Loan
You will be familiar with the process as it's a lot like the process toward your first mortgage. You'll be happy to learn the closing costs are smaller with a home equity loan, and even though there is a larger interest rate than a first mortgage loan, the interest can be deducted on your taxes.
To qualify for a second mortgage, your credit must be in good standing and you should be able to document your salary. A home appraisal is needed to assess the property's current market value. To check on your home equity/second mortgage choices, call us at 512-505-6267.