Second Mortgage a Good First Step
by: Mike Hamel
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 www.badcreditsecondmortgages.com/. The no-obligation application process is quick and confidential. Interest rates are still relatively low, but might rise in 2006, so now is a great time to see if a second mortgage is a good financial move for you.
About The Author
Mike Hamel is the author of several books and the Senior Writer for AIM Techs (www.salesandmarketingllc.com), an Internet marketing company that specializes in improving visitor-to-sale conversions using proprietary software and advanced SEM techniques. MikeHamel@salesandmarketingllc.com
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UK Consumers Start Clawing Their Way Out Of The Financial Debt Pit
UK Consumers Start Clawing Their Way Out Of The Financial Debt Pit
by: Michael Hanna
Another year ended, and another round of UK debt statistics.
CreditAction has just announced the latest summing up of the personal debt situation in the UK.
Their figures show that the end of 2005 has seen the total level of personal debt rise to an astounding ?1,158bn, an increase of ?100bn compared with the same time last year, and this debt is increasing at a rate of ?1m every 4 minutes.
These levels of debt affect everyone in the country, and have become a way of life.
The average household debt is ?46,863 including mortgages or ?7,786 including overdrafts, finance deals, credit cards and unsecured loans, but excluding mortgages.
To break this down further; CreditAction report that the average UK adult owes ?4,125 excluding secured loans, or ?24,833 including mortgage loans.
The Financial Services...
UK Consumers Start Clawing Their Way Out Of The Financial Debt Pit
Mortgages > UK Consumers Start Clawing Their Way Out Of The Financial Debt Pit
12 Quick Tips For Getting A Mortgage
12 Quick Tips For Getting A Mortgage
by: T. O' Donnell
1. Watch out for the 'Deal Of A Lifetime', the deal that seems too good to be true. The company may be saving money by cutting back on their level of service.
2. When getting a fixed rate: get a written statement which details the interest rate, how long the rate is fixed for, and the conditions attached.
3. When interest rates fall: try and leave your repayments as they are. You will therefore be paying more than the minimum each month. You'll repay your loan much earlier.
When rates rise again you may not have to change your payment.
4. Consider a fifteen or twenty year term. Try to pay off your mortgage quickly. Use a mortgage calculator with an amortization function, and see what's possible.
5. Keep your mortgage as small as possible. Aim for *comfortable* affordability.
6. Try not to 'churn' your mortgage. Each time you refinance you'll...
12 Quick Tips For Getting A Mortgage
Mortgages > 12 Quick Tips For Getting A Mortgage
The UK Housing Market Is Set To Bloom In 2006
The UK Housing Market Is Set To Bloom In 2006
by: Michael Hanna
Broker?s have predicted that the housing market is set to bloom in 2006.
After house prices dropping for 16 months in a row BBC news has reported that house prices are set to rise again in 2006, although gains will be small.
Nationwide is said to be ?cautiously optimistic? for 2006, after such a bad 2005, and say ?Our expectation is that house price growth will remain firmly in low single digits in 2006 as the economy recovers"
With house prices set to rise, how can you insure that you know how much you should pay, and how much is just over the top?
The guardian this month printed a report (http://money.guardian.co.uk/property/story/0,,1669126,00.html) telling how many people were losing out by paying too much money for newly built property that they had purchased as an investment.
It...
The UK Housing Market Is Set To Bloom In 2006
Mortgages > The UK Housing Market Is Set To Bloom In 2006
Debt Consolidation Primer ? Four Things You Can Do to Get Out of Debt
Debt Consolidation Primer ? Four Things You Can Do to Get Out of Debt
by: Charlie Essmeier
Problem debt is rampant throughout America. In addition to mortgages and auto loans, the average household in the U.S. has nearly $10,000 in credit card debt. As the major credit card companies have recently doubled their minimum payment requirements, now is a good time to outline the various options available to most consumers who have more debt than they can handle.
# Stop spending money on nonessential items. ?Nonessential? is difficult to define, but it more or less means anything that isn?t absolutely necessary to live. Phone bills, mortgages, and groceries are essential. Lattes at Starbucks, satellite television, and meals from fast food restaurants are not. By cutting out all extra spending, you can probably save several hundred dollars per month. That money can be used to reduce debt.
# Consolidate your debt. If you have more than one credit...
Debt Consolidation Primer ? Four Things You Can Do to Get Out of Debt
Mortgages > Debt Consolidation Primer ? Four Things You Can Do to Get Out of Debt