Most of our customers have reduced their monthly debt expenses by 30% found a great way to combine their bills and high interest loans into one payment. The Second Mortgage Banker extends opportunities for homeowners to consolidate debts like charge cards, consumer loans and adjustable rate helocs.
2nd mortgages are also known as home equity loan and it is used mostly for bill consolidation purposes. The reason why the second mortgage is used for debt consolidation is that it offers much lower interest rates and better terms and conditions than the first mortgage since it is issued against your home as collateral.
2nd Mortgages - Best Way for Dealing with Debt
Written by Safiyyah Lanier
When you find yourself swamped by financial problems consider a second mortgage loan for bill consolidation. In this way, you would be able to combine all the bills into one payment which is not only affordable to you, but also can improve your credit rating.
Here are some of the benefits from a second mortgage when used for bill consolidation:
Low interest rates – since this is a loan issued against your home as collateral the lender is faced with the least of risk; therefore, the interest rates are much lower than the first mortgage.
Build your credit ratings – when you apply for a second mortgage for debt consolidation you are able to rebuild your credit ratings by enabling you to make timely payments. Since the second mortgage can be spread over 15 years you would have enough time to redeem your score.
Pay off adjustable rate credit card debt – credit card debt is the most debilitating of all dues since you would be paying about 36% interest per year. The fixed rate home equity loans would be able to bring you great relief on this particular aspect.
Borrow against future value - fixed rate home equity loans or 125% home equity loans are the best for debt consolidation as you can borrow against the future value of your home which gives you a larger platform.
Easy cash out – fixed rate refinancing is the easiest way to cash out and consolidate your debts. Since you provide your home as collateral the lenders would require the least formalities before granting you the loan.
Easy Credit - Temptation That Kills
Credit is one of the most dangerous boons the modern human being enjoys. There are more casualties from using the plastic money than all the business failures put together. It is easy to overspend when you use your credit card and by paying the minimum payment due you slip into debt without realizing. Those who are happy with making the minimum payment are not aware (or like to ignore the fact) that they are paying about 3% interest per month on the remainder of the outstanding – which is huge by any standards.
Other expenses can be added such as a growing family, house renovation, buying a car, college expenses, etc. and you find yourself overwhelmed with bills.
A word of caution – Treat the second mortgage as a bail out option and use the funds wisely or you will risk loosing the most prized of your possessions, i.e. your home.