Have you considered tapping into your home equity to send a child off to college, or remodel your home? A fixed- or adjustable-rate loan that is secured by your home equity is called a "home equity loan." As with your first mortgage, you can borrow a particular amount to be repaid monthly over a certain period of time. A home equity loan may also be referred to as a second mortgage.
The steps toward a home equity loan are similar to getting your first mortgage loan. Some distinctions are though, that the rate of interest with a home equity loan is generally higher (with tax-deductible interest) with lower closing costs.
If you would like to qualify for a second mortgage, your credit must be in good standing and you should be able to verify your income. To assess your home's current value, your lending institution will require a home appraisal. To discuss your home equity loan options, contact us at (407) 294-4707.
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