Second Mortgage With Poor Credit – 5 Steps To The Best Interest Rate

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A second mortgage – also known as a home equity loan – is one of the smartest ways to getting cash fast for somebody who has mounting or pending bills that need to be paid. The reason why not everybody goes this route is that they do not have what it takes to qualify. They may not own a home, or their home may not have equity in it.In fact, a second mortgage can sometimes be the best choice for getting access to cash as compared to any of the following options:taking out a personal loan (reason: interest rate is very high)
borrowing from family or friends (reason: you risk hurting the relationship)
taking out an auto title loan (reason: you risk losing your car if you don’t repay the loan)Of course, you may be concerned that you will not qualify for a home equity loan if you have a poor credit score. This is a reasonable concern, especially if you have already applied and been rejected for this type of loan.If you want to take out a second mortgage with poor credit, try these 5 steps to getting qualified at the best interest rate:1. Figure out how much you want to borrow:Start by using pen and paper (or your computer) and figure out how much money you will need to borrow against your home’s equity. It goes without saying that you will want to borrow as little as possible.2. Consider a home equity line of credit:Next, consider taking out a home equity line of credit as a possible option. This is very similar to the second mortgage (a.k.a., home equity loan) option, except that with a home equity line of credit you will be able to borrow the money a bit at a time – rather than all at once. It usually comes at a variable (as opposed to a fixed) interest rate.3. Get in touch with poor credit second mortgage lenders:Next, make yourself a list of poor credit second mortgage lenders. You can go about this by simply looking online.4. Review your options before applying:Review the website of each lender and make sure you like what you see before you apply.5. Commit yourself to applying to all of the lenders on your list:Promise yourself – and then follow through – to apply to all of the lenders on your list. Remember, even if you get a good offer on your first try, you may get a better interest rate from the next one you apply to. It only makes sense to check out all of your options before signing a loan.Take these 5 steps to the best interest rate on your second mortgage with poor credit.