Home Equity Loans

These types of loans allow you to tap into the equity you have in your home and borrow against it to pay off high-interest debts, fund a home repair, pay for college tuition or any other major purchase while realizing some tax advantages. Contact Us to apply for a home equity loan.

A home equity loan is generally a second mortgage with a fixed rate with longer terms assessed over a set amount of time. Your monthly payment is applied to the principal and interest of your first mortgage. The loan is paid to you in one lump sum.

By contrast, a home equity line of credit is like a credit card. You can draw on it up to the limit continuously, and pay it back monthly. The advantages are that the interest is generally lower than a traditional credit card and the interest may be tax deductible. Your Bayport Mortgage consultant can help you decide which is the better choice for you.

To apply for either type of equity loan, you'll need the same documents required for a new home loan purchase plus:

• A current copy of your Home Owner's Insurance (including Flood Insurance, if applicable)
• A copy of the Note and Settlement Statement for the property for which you are applying for the loan
• A copy of the lease agreements and two-years of tax returns for any rental or investment property you own.

A number of rates and terms are available for home equity loans, including some that require no out-of-pocket closing costs. To discuss the best solution for your needs, call Bayport Mortgage today or click here to schedule a consultation with a loan advisor.