What is a Home Equity Loan?

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Do you want to tap into your home's equity to pay for a home remodeling project or to pay off a credit card? A home equity loan is a fixed rate or adjustable rate loan that uses the equity in your home as collateral. You borrow a sum of money to be repaid monthly over a set time frame, like you original mortgage. You can use the terms "home equity loan" and "second mortgage" interchangeably.

Getting the Loan

Getting your current mortgage loan is a process similar to that of a home equity loan. Some differences are though, that the rate of interest with a home equity loan is typically more (with tax deductible interest) with smaller closing costs.

You will have to provide salary documentation and have good credit to qualify for a home equity loan. A home appraisal is necessary to assess the home's market value. To explore your home equity loan choices, contact me at (619) 758-4035.

Have questions about your home equity? Call me at (619) 758-4035. It's my job to answer home equity loan questions. I'm happy to help!