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2nd Mortgage Lenders Still Extending Home Equity Loan Opportunities

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Over the years, homeowners have chosen home equity loans for cash back purposes for many reasons. First of all home equity loans also known as 2nd mortgages have been accessed easily by a high percentage of homeowners. Second of all, equity mortgages are a great source for financing because interest rates are lower than credit card rates. Credit card companies are also less likely to approve loan amounts as large a mortgage lender would on a secured second loan.

Compare 2nd Mortgage Loans Online for Home Improvements, Consolidation and Cash Back

Another significant benefit for a 2nd mortgage over a credit card is the fact that the interest on the mortgage is deductible up to $100,000 in most cases, whereas the interest on credit cards is not deductible. For the last few decades, homeowners have enjoyed taking out home improvement loans to remodel or make repairs to the property. Up until recently making improvements to a home would increase the home’s value, but the current housing crisis has hindered that luxury.

Home loans for bad credit have not been as easy to come by this summer, but many insiders believe that will change as more private money lenders get back into the lending business. However getting a bad credit 2nd mortgage is next to impossible these days because the soaring defaults rates have made second mortgage lenders uneasy about extending money in loan to value situations.

According to recent sources second mortgage loans continue to be a problem as defaults continue to mount at a record pace.  Unfortunately for 2nd mortgage lenders, they are still defaulting at a higher rate than first mortgages. Refinancing a 2nd mortgage may be difficult if you are late on your loan. Negotiating a buy-out may be an option, as some second mortgage lenders have been agreeing to “pennies on the dollars” in some cases.

With interest rates falling to record lows again this year, you can see why equity mortgages have become such a hot commodity. The Federal Reserve won’t be able to keep key rates low for much longer, so our experts suggest reviewing quotes from 2nd mortgage lenders now if you are serious about borrowing money without refinancing your present loan.

Rates on Equity Mortgages and Lines Remain at Record Lows!

Taking out a second mortgage may not be as easy as it was a few years ago, but millions of homeowners continue to choose home equity lines over credit cards and unless the IRS does away the interest deductions, there is a good chance these equity mortgages will remain a popular financing vehicle for homeowners to access quickly and cost effectively. Read more about deducting interest on home equity liens from the IRS.

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