Home Equity Loans
Have you considered tapping into your home equity to send a child off to college, or remodel your home? With a home equity loan, your fixed or adjustable rate loan is secured by your home equity. You borrow a sum of money to be repaid in monthly payments over a set time frame, much like your original mortgage agreement. You can use the terms "home equity loan" and "second mortgage" to mean the same thing.
Getting the Loan
You'll be accustomed to the process as it is a lot like getting your first mortgage. The closing costs (usually 2-3& of the loan amount) are typically lower and, although the rate of interest is higher on a home equity loan, the interest paid can be tax deductible.
You'll have to provide salary documentation and have a positive credit score to qualify for a home equity loan. A home appraisal is required to calculate the home's market value. To check on your home equity loan options, call us at (512) 398-3416.