Why are second mortgages considered "bad"?
We got one to pay off credit card debt. The interest rate is way, way lower than the credit cards, and the term of the 2nd mortgage is 10 years. What's wrong with that? I wanted to add, I feel the loan officer was not forthright in explaining that this was a "second mortgage". I feel he did this because it has negative connotations, but I wasn't sure why. Loan was 30K, home value 275k, with 180 owed. I agree about Zillow a hundred percent ! It has home values as much as 50% higher than they are selling for in my area. I think it will take a couple of years for all of the kinks to be worked out in their system- Well, because any increase in debt is bad. Also, unlike credit card debt, your house now secures your mortgage. Fail to pay your credit card, and your credit rating suffers. Fail to pay your mortgage, and the bank can foreclose on your house. As long as you are capable of making the payments, you are smart to take debt at a lower interest rate. The tradeoff is that your ets are now at risk
- Who told you that Second Mortgages are bad? If used properly, they are a great way to pay off high interest debt. Plus the interest may be tax deductible. The only concern is if your 'second' and first mortgages exceeds the value of your home. I am talking about 125% loans. You should visit Zillow.com and check the value of your home. Lets say that it is $100, 000. If your first mortgage is $80, 000 and your new second is $20, 000 you will be at a combined loan to value CLTV of a hundred percent 80 20=100. That means that you have used a hundred percent of the equity in your home. In the same scenario, if you borrowed $30, 000 you would exceed the total value of your home with a CLTV of 110%. THIS CAN BE A PROBLEM IF YOU PLAN, OR HAVE TO MOVE FROM THAT HOME; since you owe more than the home is worth. If there is any chance you will HAVE to sell the home, in the next few years, don't take a loan where the CLTV exceeds the value of the home. If you have more questions email me ANONYMOUSLY at freemortgageadvice@yahoo.com. I am a retired mortgage exec with lots of free time. I don't make loans so the advise is unbiased. Good luck ~ The Renegade Banker
- Be carefull with zillow.com The values are all over the place and I would not recommend that you use it to determine the value of your home. Only a professional appraisal will do that. believe me it's worth $350
- It really all depends on ur needs and what you can afford - diff brokers / lenders diff rates and like most of them they don't care about you they just care about ur wallet
- The first answerer is very smart and correct. It's unfortunate that you had to take out a 2nd mortgage because you couldn't pay your credit card off. This also means it will be longer before you get your house paid off and of course there's less equity so when you sell it you won't get as much money. You might not even be able to sell it for what you owe now. Another downside of debt
- In addition to what j said above, many people will take out the second mortgage to consolidate debt. That's fine. The problem is that then they spend with their credit cards again and get back in the same situation except this time, they have a lot more debt than before. It takes a bit of self - discipline to make it work, and many people don't have that
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Does anyone know of an honest mortgage lender that helps people with bad credit?
we are wanting to purchase a larger home asap, however my husband and i do not have very good credit. does anyone know of a mortgage company that deals with bad credit that i may be able to get the approval i so desperatly want and need? thanks in advance (bad credit mortgage loans)
I need help with obtaining a loan, but have bad credit where can I find a lender?
if it is a commercial or residential mortgage loan, i may be able to help. get bad credit loans from some lenders quickly and easily. before you apply for a bad credit. go to badcreditresources.com. thy a list of lenders that provides loans to people wit bad credit. fill out (bad credit second mortgage)
Is it impossible to find a mortgage with severely bad credit?
my husband and i are looking to purchase our first home, however we both have very poor credit scores and yes i know this is bad news but we have found a home of which we would like to purchase. the home loan would be for about $120, 000, i (bad credit mortgage loans)
Knowledge Base: Bad Credit Mortgage
Is there any way to get a mortgage loan with bad credit?
hi there, i was wondering if there is any way at all to obtain a mortgage loan with bad credit, my home is sold and i am looking at a condo, i have half of the money for the condo but will need another half through a mortgage loan. is (bad credit mortgage)
Are there any banks that give mortgage loans to people with bad credit?
i am looking to buy my first home. my goal is to get to a 620 credit score but i know this will take quite some time. i was wondering if there are banks out there that give you loans to buy a home if you have bad credit or (bad credit mortgage)
can i get a bad credit mortgage loan?
i am having a home foreclosed on, and would like to know if anyone can give me a mortgage?. that's funny. probably not. it's tough to get a mortgage now even if you have good credit. have you contacted your mortgage holder and ask them if they can re - (bad credit mortgage refinance)
Can you refinance a mortgage even if you have bad credit?
i only owe $39, 000. 00 on a home worth $150, 000. 00. it is a loan through beneficial at 12. 5% interest. my credit is bad due to the fact i umed my deceased father's bills. i would like to refinance my mortgage and get some cash out to (california bad credit mortgage)
Where can you find a mortgage lender when you have bad credit?
i own a home with very little owed on it as compared to it's value and i want to refinance and get a little cash out to do some home improvements but my credit is bad because i umed a family member's debt. i have a good job and steady (bad credit mortgage refinance)
Knowledge Base: Bad Credit Second Mortgage
He has good credit, good paying job I have bad credit, low paying job can we get a mortgage loan together?
we are engaged and would like to blend our families and lives. he owns a home and uses it as rental income. he has been preapproved for a second mortgage loan at 220k. he has good credit history, score of 750 and makes 70k. the house's we like are about (bad credit second mortgage)
where can i get a second mortgage with bad credit?I just bought home 3 monthes ago. ?
depends on how much equity is in your place since you purchase it 3 months ago. obviously if you just bought it 3 months ago, and you already need to get a 2nd mortgage, you probably will not get approved, especially when you have bad credit to begin with, because (bad credit second mortgage)
2nd mortgage a bad idea?
my boyfriend's grandfather 75 years old has decided to get a second mortgage on his house. the house and property are worth about $700, 000. he said he's getting $35, 000. he has really bad credit. he always buys crap off the infomercials and then never pays for it. he (bad credit second mortgage)
where can i take out a second mortgage? with bad credit?
we have a lot of debt and would like to take out a secound mortgage. where could i look with somewhat bad creidt? i know do not say get ur spending under control becouse we have and have cut them all up but still need to pay off. so where (bad credit second mortgage)
Why are second mortgages considered "bad"?
we got one to pay off credit card debt. the interest rate is way, way lower than the credit cards, and the term of the 2nd mortgage is 10 years. what's wrong with that? i wanted to add, i feel the loan officer was not forthright in explaining that this (bad credit second mortgage)
