Second Mortgage A Good First Step

Second Mortgage a​ Good First Step
A second mortgage can be the​ first step to​ climbing out of​ debt,​ especially for homeowners who have bad credit .​
a​ second mortgage is​ a​ loan taken out in​ second position on​ a​ property that already has a​ mortgage .​
There are fixed-rate loans,​ adjustable-rate loans and home equity lines of​ credit (also known as​ HELOCs) .​
Fixed-dollar-amount mortgages are the​ way to​ go when you​ need all the​ money at​ once .​
a​ HELOC is​ a​ credit line that can be drawn upon as​ needed up to​ the​ limit of​ the​ loan.
Bad Credit Second Mortgages
Your right to​ credit is​ guaranteed by the​ Equal Credit Opportunity Act .​
You can’t be denied credit based on​ race,​ gender,​ marital status or​ ethnicity .​
But how much money you​ can borrow and how much interest you​ will be charged will depend on​ your credit score.
Credit is​ easy to​ get and hard to​ control .​
Not using it​ properly will get you​ a​ low FICO score from the​ three major credit bureaus .​
Generally,​ a​ score of​ 680 or​ better signifies good credit .​
Scores in​ the​ 680-620 range are still considered good,​ but will cause creditors to​ take a​ second look before lending you​ money .​
620 and lower,​ and you​ are in​ the​ bad credit range.
Here are some indications that you​ are in​ bad credit territory:
- you​ have to​ apply for new credit cards to​ pay off old ones,​ thus rotating but not retiring your debt.
- you​ can only make the​ minimum payments on​ your loans and cards each month.
- you​ are at​ the​ limit on​ all your cards and accounts.
- you​ have to​ get subprime financing when you​ need to​ borrow money.
Improving Your Financial Situation
It’s a​ catch 22 that getting a​ bad credit second mortgage can lower your FICO score initially,​ but it​ can also help raise it​ in​ the​ long run—if you​ use the​ money to​ pay off high interest debts .​
This new loan doesn’t reduce your debt; it​ just restructures it​ to​ help you​ get back on​ your feet financially .​
An added bonus is​ that the​ interest you​ pay is​ tax deductible .​
The IRS says joint filers can deduct all the​ interest to​ a​ maximum of​ $100,​000 on​ home mortgages.
It’s easy to​ shop and compare bad credit second mortgages online at​ reputable sites like .​
The no-obligation application process is​ quick and confidential .​
Interest rates are still relatively low,​ but might rise in​ 2018,​ so now is​ a​ great time to​ see if​ a​ second mortgage is​ a​ good financial move for you.

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