Do you need to tap into your home's equity to pay for a home remodeling project or to pay off a credit card? A fixed- or adjustable-rate loan secured by the home equity you have built up is called a "home equity loan." You borrow a sum of money to be repaid monthly during a set period of time, just as you do with your original mortgage. You can use the phrases "home equity loan" and "second mortgage" to mean the same thing.
Getting your current mortgage is a process similar to that of a home equity loan. The closing costs (usually 2-3 percent of the loan amount) are generally lower and, although your rate of interest is higher on a home equity loan, the interest paid is tax deductible.
In order to qualify for a second mortgage, you need to have a reasonable credit score and you need to be able to provide documentation of your income. A home appraisal is needed to determine the property's current market value. To check on your home equity choices, contact us at 9094671090.
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