Perhaps you are considering tapping into your home equity to renovate your kitchen, or take care of the balance on a credit card. In a home equity loan, a fixed or adjustable rate loan is secured by the equity in your home. You will repay this loan over an agreed time period by making monthly payments, just like with your original mortgage. A home equity loan can also be called a second mortgage.
You'll be comfortable with the process as it's a lot like getting your first mortgage. You will be pleased to know the closing costs are smaller with a home equity loan, and even though there is a bigger interest rate than a first mortgage, the interest can be deducted from your taxes.
You will have to provide salary documentation and have a positive credit score to qualify for a home equity loan. A home appraisal is necessary to determine the home's current market value. To talk about your home equity/second mortgage loan choices, call us at 205-941-1484.
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