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 or adjustable rate loan that uses your home equity as collateral. You borrow a lump sum of money to be paid back monthly during a set period of time, similar to first mortgage. The terms "home equity loan" and "second mortgage" may be used interchangeably.
You'll be comfortable with the process as it is much like the process toward your first mortgage. You'll be pleased to know the closing costs are lower with a home equity loan, and although there is a larger interest rate than a first mortgage loan, the interest may be deducted on your taxes.
You will have to provide income documentation and have good credit to qualify for a home equity loan. A home appraisal is necessary to determine the home's market value. To talk about your home equity options, contact us at 612-327-4544.
Have questions about your home equity? Call Joe Wagner at 612-327-4544. Joe Wagner answers questions about home equity every day.
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