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. In a home equity loan, your fixed or adjustable rate loan is secured by your home equity. Similar to your first mortgage, you borrow a certain sum of money to be paid back monthly over a period of time. A home equity loan at times is also called a second mortgage.

Getting Your Home Equity Loan

You'll be accustomed to the process as it's a lot like the process toward your current mortgage. Your closing costs (usually 2-3& of the loan amount) are generally smaller and, even though your interest rate is bigger on a home equity loan, the interest is tax deductible.

You'll have to provide proof of your salary and have a reasonable credit score to qualify for a home equity loan. To determine your home's current value, your lending institution will ask for a home appraisal. To talk about your home equity loan choices, call us at 281-860-2533 X-102.

Have questions about your home equity? Call us at 281-860-2533 X-102. AmCap Mortgage Bank, Ltd. answers questions about home equity every day.