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.