Poor Credit Second Mortgage Loans
When bills start to pile up too high, it can be difficult to keep up
with payments. One option to solve the issue of having too many bills is
to seek a second mortgage loan. However, if your credit is less than
desirable to lenders for obtaining a loan, be assured that hope is not
out of reach. By searching for different resources, you may find that
you qualify for a poor credit second mortgage loan.
Poor credit second mortgage loans can be the saving grace to what
could may currently feel like a financial disaster. By refinancing your
home and cashing out on its value and its equity, you can receive funds
to pay off high interest credit card bills, consolidate all other debt
such as smaller loans, pay for a child's college education, finance a
business, and more.
Most anyone with bad credit, no matter how severe, can receive a poor
credit second mortgage. Even individuals or couples with a history of
bankruptcy more than ten years ago can qualify for such a loan. Your
credit rating and scores will play a vital role in qualifying for the
poor credit second mortgage loan, and your interest rate will be
configured with your scores. Generally speaking, according to Platinum
Concepts, Inc. in Madison, Wisconsin (www.platinumconcepts.net), a loan
is obtainable with a credit score of 550 or higher.
Pros of Obtaining a Poor Credit Second Mortgage Loan
1. Poor credit second
mortgage loans offer people with low credit ratings and scores the
opportunity to qualify for a loan and obtain funding when they would
not otherwise qualify for a conventional loan
2. A poor credit second mortgage can offer a way to consolidate debt
and pay off outstanding bills, while at the same time, offer a lower,
more affordable monthly payment. Considering the reasons why credit
scores are low, extravagant purchases are not recommended on poor credit
second mortgage loans. Using the money wisely will help you rebuild your
credit.
3. Reducing debt and paying the monthly installment on time for a
poor credit second mortgage loan can offer an individual the opportunity
to improve credit ratings.
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4. A poor credit second mortgage loan often offers flexibility in
regards to interest rates, payment options, and the term of the
mortgage.
5. The interest for most poor credit second mortgage loans is tax
deductible.
Cons of Obtaining a Poor Credit Second Mortgage Loan
1. If the poor credit second mortgage loan is not paid or defaults,
you are at risk of losing your home. Payments need to be made
consistently and on time.
2. The interest rate is usually higher for a poor credit second
mortgage loan than for a first mortgage or other conventional second
mortgage loan.
3. You are at a much higher risk of worsening your credit situation
if the monthly loan installments for the poor credit second mortgage are
not paid on time or are missed.
Poor credit second mortgages can be obtained from lenders
specializing in loans for individuals and couples with poor credit.
Research lenders carefully, and before signing on a loan, read
everything, including the fine print. Make sure you understand
everything entirely, and that there are no hidden costs involved. If
you're having problems finding a lender, a mortgage broker may be able
to offer assistance in getting a poor credit second mortgage loan.
Mortgage brokers, such as Platinum Concepts, Ditech, E-Loan, Lending
Tree, and others, generally work with hundreds of different lenders. A
broker will "shop around" on your behalf, and find a lender that offers
the lowest possible interest rate based on your particular credit
situation.
Mortgage brokers are available locally and nationally, and can be
found in your local yellow pages, as well as on the world wide web.
Choose a broker carefully, though. If you know of another individual who
has used one, or know of one that you could meet with personally and
check their references, this is a great precaution to consider. Examine
a mortgage broker in the same way you would any other lender, and make
sure that your loan needs will be met with the loan. Don't settle for
something that just doesn't seem right.
After obtaining a poor credit second mortgage, use your money wisely.
Consider the loan an extremely fortunate "fresh start" with your
finances. Budget your income carefully so that loan payments can be made
on time. Falling behind on even one payment will drop your credit scores
significantly, and this poor credit second mortgage loan is meant to do
just the opposite, namely, offer you the opportunity to rebuild your
credit and increase your credit scores. Make your payments on time, and
don't miss any payments or your home ownership may be at risk.To avoid this risk, change your financial future with the poor credit
second mortgage. Don't overspend, and don't make any purchases unless
the item is necessary. If you have credit cards, destroy all but one,
and use that one card only for emergencies, such as unexpected auto
repairs, and pay off the card in full before using it again. Start
saving money with each paycheck you receive, and don't touch the money
that you deposit into the savings account. Even if it's just a few
dollars a week, strive to build your savings and leave that money alone
except in the event of an emergency. |