What is a Home Equity Loan?
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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 uses the equity in your home as collateral. You'll repay the loan over an agreed period of time by making monthly payments, like with your original mortgage loan. People often use the phrases "home equity loan" and "second mortgage" to mean the same thing.
Getting Your Home Equity Loan
You will be familiar with the process as it's a lot like the process toward your first mortgage. You will be pleased to learn the closing costs are smaller with this loan, and even though there is a higher interest rate than a first mortgage, the interest can be deducted from your taxes.
You will have to provide income verification and have good credit to qualify for a second mortgage. A home appraisal will be required to assess the property's current market value. To explore your home equity options, contact us at 607-547-5007.
Have questions about your home equity? Call us at 607-547-5007. It's our job to answer home equity loan questions, so we're happy to help!