Tapping into Your Home Equity
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Do you need to tap into your home's equity to pay for a home remodeling project or to pay off a credit card? A fixed- or adjustable-rate loan that is secured by your home equity is called a "home equity loan." You borrow a lump sum of money to be paid back monthly over a set time frame, similar to original mortgage. You can use the phrases "home equity loan" and "second mortgage" to mean the same thing.
Home Equity Loan Specifics
Getting your current mortgage loan is a process similar to that of a home equity loan. Some distinctions are though, that the interest rate with a home equity loan is usually more (with tax-deductible interest) with smaller closing costs.
To qualify for a second mortgage, you need to have a positive credit score and you should be able to verify your salary. To assess your home's current value, your lender will require an appraisal of your home. To explore your home equity/second mortgage options, contact us at 714-939-3863.
Have questions about your home equity? Call us at 714-939-3863. Pacific Capital Mortgage Corp answers questions about home equity every day.