Home Equity Loan

A home equity loan uses the equity in your home—the difference between your home’s current market value and what you owe on your mortgage—as collateral for the loan. Like a regular mortgage, the loan is disbursed in one lump sum that you pay back in equal monthly installments over a fixed term—usually five to 30 years—at a fixed interest rate.

Although amounts may vary from one lender to the next, most lenders let you borrow up to 75% to 85% of your home’s current equity. The amount you qualify for and the interest rate you pay will typically depend on your credit score and payment history.

Home equity loans allow you to use the cash for a variety of reasons, including funding your education, paying off or consolidating credit card debt, starting a business or paying medical bills. But if you use the money to buy, build or substantially improve your home, you may be able to deduct interest paid on the loan on your taxes. You can deduct interest on up to $750,000 of qualified home loans, or $375,000 for a married taxpayer filing a separate return, according to the IRS.

Degang Cheng, PhD
Loan Officer
NMLS: 2464860
Googain Inc. 
NMLS: 275975
1288 Kifer Rd STE 208, Sunnyvale, CA 94086
Email: DegangCheng@googain.com
Cell Phone: 510-516-8551