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 secured by your home equity is called a "home equity loan." You borrow a lump sum of money to be repaid in monthly payments over a set period of time, like you original mortgage. You can use the terms "home equity loan" and "second mortgage" interchangeably.
You will be comfortable with the process as it's much like the process toward your existing mortgage. Some distinctions are though, that the rate of interest with a home equity loan is generally higher (with tax-deductible interest) with smaller closing costs.
In order to qualify for a second mortgage, you will need a positive credit score and you should be able to provide documentation of your income. To determine your home's current value, your lender will ask for a home appraisal. To check on your home equity/second mortgage loan options, contact us at 352-347-3303.
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