What is a Home Equity Loan?

Have you considered tapping into your home equity to send a child off to college, or remodel your home? With a home equity loan, a fixed or adjustable rate loan is secured by your home equity. You borrow a certain amount of money to be paid back monthly over a set time frame, just like your original mortgage loan. The terms "home equity loan" and "second mortgage" are often used interchangeably.

Getting the Loan

The steps toward a home equity loan are similar to getting your current mortgage loan. Some differences are though, that the rate of interest with a home equity loan is usually higher (with tax-deductible interest) with smaller closing costs.

You will have to provide income verification and have a positive credit score to qualify for a home equity loan. To determine your home's market value, your lender will require a home appraisal. To check on your home equity loan options, call us at 716-819-1081 .