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 fixed- or adjustable-rate loan secured by the home equity you have built up is called a "home equity loan." You borrow a lump sum to be paid back in monthly payments during a set time frame, similar to original mortgage. A home equity loan is sometimes also referred to as a second mortgage.
Getting Your Home Equity Loan
You will be accustomed to the process as it is much like the process toward your existing mortgage. Some differences are though, that the interest rate with a home equity loan is usually more (with tax-deductible interest) with smaller closing costs.
You will have to provide income verification and have a reasonable credit score to qualify for a second mortgage. To figure out your home's market value, your lender will require a home appraisal. To talk about your home equity/second mortgage options, call us at (909) 467-1090.