Home Equity Loans
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 the equity in your home. As with your first mortgage, you borrow a particular sum of money to be paid back monthly over a certain period of time. The terms "home equity loan" and "second mortgage" are often used interchangeably.
Getting the Loan
You will be accustomed to the process as it's a lot like the process toward your first mortgage. You will be pleased to learn that the closing costs are lower with a home equity loan, and even though there is a higher interest rate than a first mortgage, the interest may be deducted on your taxes.
You will have to provide income verification and have a reasonable credit score to qualify for a home equity loan. A home appraisal is necessary to assess the property's current market value. To explore your home equity loan choices, call us at 608-592-5600.
Have questions about your home equity? Call us at 608-592-5600. Rasmussen Mortgage answers questions about home equity every day.