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Home equity loan
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 home equity loan is a fixed or adjustable rate loan that is secured by the equity in your home. With a home equity loan, you borrow a lump sum of money to be paid back monthly over a set time frame. The terms home equity loan first or second mortgage are often used interchangeably.
The process for a home equity loan is similar to any mortgage. The closing costs are usually the same and, although the interest rate is higher on a home equity loan, the interest paid is tax deductible. When using an accelerated HELOC first mortgage the interset rate itself isn't as important as the ability to pay dowm the principal much faster that a 30 year fixed rate loan.
To qualify for 1st or 2nd HELOC mortgage, your credit must be in good standing and you must be able to document your income. Some stated income programs are available for 1st mortgage HELOC's. An appraisal will be required on your home to determine the home's market value.
If you are interested in paying down your mortgage faster with a 1st mortgage HELOC, click on the link below and follow the instruction to see how much you can save.
HOME OWNERSHIP ACCELERATOR
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