Can You Consolidate Debt and Refinance Unsecured Loans with a Second Mortgage?
Fixed 2nd Loans for Consolidating Credit Cards and Revolving Debts
We suggest transforming revolving credit card debts into a second mortgage with a fixed interest rate. The popularity of debt consolidation mortgages is on the rise, as they can reduce your payments and provide additional tax deductibility that credit cards lack.
Dan Ambrose of Irwin Home Equity notes, “Consolidating compounding interest from credit card debt can save you thousands of dollars a year.” We recommend that consumers explore fixed debt relief mortgage options for consolidating high-rate loans and revolving accounts with elevated interest rates
What is more effective for debt consolidation? A second mortgage or first mortgage refinance?
Debt Consolidation 2nd Mortgage Highlights
Debt Consolidation 101: Can I Get a Second Mortgage with Credit Problems in the Past?
Consolidating debts, such as credit cards or loans, often prompts individuals to consider mortgage refinancing or second mortgages (home equity loans). If your primary mortgage has a low rate and you aim to consolidate debts, a second mortgage might be a suitable choice instead of a mortgage refinance. However, individuals with a history of bankruptcy or poor credit may wonder about securing a second mortgage with a fixed rate to manage compounding interest from credit card debt.
Indeed, it’s possible to obtain a home equity loan even with a prior bankruptcy and bad credit, but the interest rate may be higher than for those with good credit. This approach could contribute to improving your FICO scores, with rates likely being more favorable than those associated with credit card debts. Additionally, the interest paid on the loan might qualify for a 100% tax deduction.
To secure the best possible rate for a second mortgage with bad credit, follow these tips and work towards enhancing your FICO scores:
- Obtain your credit reports from each credit reporting agency and correct any errors.
- Order your FICO scores from myfico.com to understand your creditworthiness as perceived by lenders.
- Focus on factors that impact your FICO scores, as illustrated in the weighting chart provided by Fair Isaac.
When shopping for a second mortgage for bill consolidation, be aware that multiple inquiries within a short period generally won’t negatively impact your FICO score. The score ignores mortgage and auto inquiries made in the 30 days prior to scoring. It also treats multiple inquiries within a typical shopping period as a single inquiry, preventing a significant impact on your score. Article was written by Maria Ny.
This can be a great aid in budgeting and setting goals to become debt free. Take a look at your monthly statements for loans and credit cards, and add up the monthly totals. Do you have a good plan for paying off the debt. Ask yourself this question.
Should I Get a Home Equity Mortgage With a Fixed or Adjustable Rate?
Also see options for No Income Verification, Debt Consolidation Loans and Bad Credit Refinancing.
More Popular 2nd Mortgages to Consider:
Please view the popular 2nd mortgage products below. If you need more information, Please select the loan that interests you most. To get more details click the relevant link below to get more information and helpful advice.
|125% Second Mortgage
|95% 2nd Liens
|100% Second Mortgages
|105% 2nd Mortgages
*2nd mortgage approvals are subject to submitting an application to Nationwide Mortgage Loan Company. The essential conditions for approvals are underwriting qualifications such as: verification of income, employment, assets and other information like obtaining an acceptable property.
Many loan companies will charge a fee for applying for a loan. BD Nationwide Mortgage never charges you an application fee and there is no obligation to do a loan with us. We offer Free loan quotes that will help you determine the interest rate and payment info. Our friendly loan team can help you find the best second mortgage for your situation.
If you’re not systematically reducing the principal amount of your debt each month and find yourself burdened with substantial credit card debt, it’s advisable to reach out to BD Nationwide for a complimentary consultation on mortgage debt relief with one of our friendly lenders and loan officers.