What is a Home Equity Loan?
Perhaps you are considering tapping into your home equity to renovate your kitchen, or take care of the balance on a credit card. A home equity loan is a fixed rate or adjustable rate loan that is secured by the equity in your home. You may have also heard this type of loan referred to as a "Cash-Out Refinance". In the state of Texas you may borrow up to 80% of the value of your home once every 12 months.
Home Equity Loan Specifics
You'll be familiar with the process as it's a lot like the process toward your existing mortgage. Some distinctions are though, that the interest rate with a home equity loan is usually more (with tax deductible interest) with smaller closing costs.
In order to qualify for a Home Equity Mortgage, you need to have a positive credit score and you should be able to document your income. A home appraisal will be necessary to determine the property's current market value. To check on your home equity choices, contact us today!
Have questions about your home equity? Call us at (903) 747-1800. It's our job to answer home equity loan questions, so we're happy to help!