Tapping into Your Home Equity

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 paid back monthly during a set time frame, similar to first mortgage. A home equity loan at times is also referred to as a second mortgage.

Home Equity Loan Specifics

You'll be comfortable with the process as it is much like getting your existing mortgage. You'll be happy to know the closing costs are smaller with a home equity loan, and even though there is a higher interest rate than a traditional mortgage, the interest can be deducted on your taxes.

In order to qualify for a second mortgage, your credit must be in good standing and you must be able to verify your salary. To determine your home's current value, your lending institution will require a home appraisal. To check on your home equity choices, call us at (504) 212-0704.