Have you considered tapping into your home equity to send a child off to college, or remodel your home? In a home equity loan, your fixed or adjustable rate loan is secured by the equity in your home. Similar to your first mortgage, you borrow a specific amount to be repaid monthly over a certain period of time. A home equity loan can also be called a second mortgage.
The steps toward a home equity loan are similar to getting your first mortgage loan. You'll be happy to learn that the closing costs are lower with this loan, and although there is a higher interest rate than a first mortgage, the interest may be deducted on your taxes.
You will have to provide proof of your salary and have a positive credit score to qualify for a second mortgage. A home appraisal is necessary to calculate the home's market value. To discuss your home equity/second mortgage choices, call us at 562-818-3502.