Is a Second Mortgage for Bad Credit Right for You?

Is a Second Mortgage for Bad Credit Right for You?

It's time to find out whether or not a second mortgage for bad credit is right now you! A second mortgage involves leveraging the equity you have built up in your home in order to secure a loan. A second mortgage can provide a necessary source of money for all kinds of different reasons, but there are a lot of important factors to consider before applying for a second mortgage.
A second mortgage is on top of the existing or first mortgage. In the case of a home being sold or in case of default, the money secured by selling the home will go towards paying the first mortgage with any leftover funds going towards paying the second mortgage. This represents a higher risk for lenders who finance second mortgages, and this higher risk is passed on to the applicant through higher interest rates. If you have bad credit, it can be much more difficult to secure a second mortgage, and you will likely be subject to higher interest rates if you are approved.

The Importance of Finding the Best Rate

The importance of shopping around when it comes to mortgage interest rates is hard to understate. Even a fraction of a percentage point can mean savings of thousands of dollars over the course of the mortgage. The big banks typically offer their rates with little room for negotiation, especially when it comes to second mortgages. If there is bad credit involved, most big banks will not provide an option for a second mortgage at all.
Private mortgage lenders often have access to a wide network of different lending sources with some of these companies specializing in placing hard to secure mortgages. Whether it is a first mortgage with perfect credit or a second mortgage for bad credit, these mortgage specialists work hard to get you approved with the best possible mortgage rate. Speak to a reputable mortgage specialist today to see if a second mortgage with bad credit is right for your unique financial situation, and discuss what options are available. 


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