Perhaps you are considering tapping into your home equity to renovate your kitchen, or take care of the balance on a credit card. A home equity loan is a fixed rate or adjustable rate loan that is secured by your home equity. You'll repay your loan over an agreed period of time by making payments monthly, like your first mortgage loan. The terms "home equity loan" and "second mortgage" can be used interchangeably.
You will be comfortable with the process as it is much like getting your current mortgage. Your closing costs (often 2-3& of the loan amount) are usually lower and, even though the rate of interest is more on a home equity loan, the interest paid can be tax deductible.
You'll have to document your salary and have a positive credit score to qualify for a second mortgage. To assess your home's market value, your lender will ask for a home appraisal. To discuss your home equity/second mortgage loan choices, contact us at (949) 494-4701.
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