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 that is secured by the home equity you have built up is called a "home equity loan." You borrow a certain amount to be paid back with monthly payments during a set time frame, like you original mortgage. You can use the terms "home equity loan" and "second mortgage" interchangeably.
The steps toward a home equity loan are similar to getting your existing mortgage loan. You'll be pleased to know that the closing costs are smaller with this loan, and even though there is a larger interest rate than a first mortgage loan, the interest may be deducted from your taxes.
You'll have to provide salary documentation and have good credit to qualify for a second mortgage. To figure out your home's market value, your lending institution will require an appraisal of your home. To talk about your home equity loan choices, call us at (408) 540-0200.
Do you have a question? We can help. Simply fill out the form below and we'll contact you with the answer, with no obligation to you. We guarantee your privacy.