| If you are considering a second mortgage to | | | | them rebuild their credit. When you borrow a |
| access equity in your home and have poor | | | | lump sum in the form of a second mortgage you |
| credit, there are a number of options | | | | can use this month to pay of your high |
| available to you. Your credit rating will | | | | interest debts. This will result in one |
| determine the interest rates and terms you | | | | payment with a lower interest rate for all of |
| qualify for on the new loan. Here are several | | | | the debt consolidated. Remember that |
| tips to help you improve your application and | | | | consolidating your debt does not eliminate |
| qualify for a better second mortgage loan. | | | | your debts, it simply moves it around to make |
| | | | it easier for you to pay back. |
| What is a Second Mortgage Loan? | | | | |
| | | | Rebuild Your Credit with a Second Mortgage |
| A second mortgage is a loan secured by your | | | | Loan |
| home based on the equity you own. Second | | | | |
| mortgages can be obtained from the same | | | | Obtaining a second mortgage will not be an |
| lender as your primary mortgage; however, | | | | instant fix to your credit problems. Once |
| many homeowners find a better deal from a | | | | you have consolidated your debts it is |
| different mortgage lender. Either way, your | | | | important to make all of your payments on |
| home will have a second lien on it and if you | | | | time and control your spending habits. If |
| fall behind on either mortgage the lenders | | | | you begin running up balances on your credit |
| can take your home. When you take out a | | | | cards after consolidating your debts it |
| second mortgage loan you will typically have | | | | defeats the purpose of the consolidation |
| two payments, one for your primary mortgage | | | | loan. Improving your credit score after |
| and another for the second mortgage. | | | | consolidation means maintaining low balances |
| | | | on your credit cards, being responsible with |
| Why Apply for a Second Mortgage? | | | | credit, and paying all of your bills on time. |
| | | | After as little as 24 months you will be on |
| There are a variety of reasons for taking out | | | | track to having a good credit rating. You |
| a second mortgage loan. Many homeowners with | | | | can learn more about your mortgage options by |
| poor credit use a second mortgage to help | | | | registering for a free mortgage guidebook. |