Owning a home is a huge accomplishment, but it often comes with financial burdens. Even for homeowners that have paid their first mortgage. If you're in that situation and you still need money, you may consider applying for a home equity loan. This type of loan acts as a second mortgage, which is financed by your property value, and can be used for anything you want. It's a good option for those who owe less than their property value. Here's why it can be a great option to give homeowners more freedom.
There are tons of benefits to applying for a home equity loan. They usually have lower interest rates and have a lower credit threshold for qualification. Your interest costs can also be tax deductible, which is a nice bonus, and you'll be eligible to get larger loans dependent on your home equity. That all sounds great, but how do you get started? The process is simple through LendingTree.
Your first step to applying for a home equity loan is by finding the right lender. We recommend starting with LendingTree, a company that finds the best loan rates for their customers. All you have to do is go to their "compare live rates" feature and answer a few questions. Here's how it works.
You'll start by selecting the type of property that you have and how you use it. Then, you'll enter your estimated property value, purchase price, and year of purchase. Enter your 1st mortgage balance and the amount you would like to borrow (up to $400k). Then select your credit range and answer a few questions about your personal financial history, and you'll receive results in 24 to 48 hours.
A home equity loan can be a great way to use the value of your property to your advantage. Don't be left out of the benefits because you expected the process to be so much more difficult. With LendingTree, you're connected to one of the largest lender networks, so you can find what you need quickly and easily.