Bad Credit Second Mortgage Lender & 2nd Refinancing Home Loans


:: Second Mortgage Loans

Second Mortgage Loans Explained

Second mortgage loans are basically home equity loans that borrows against equity in person's home. While this does add an extra amount of risk to a borrower's mortgage payments, these loans can certainly come in handy. Since you are borrowing money against your home, you have a good chance at finding a low rate second mortgage loan -- or at least a lower rate than a traditional auto loan. Oftentimes, second mortgage loans are used for home improvement loans or for other major purchases such as medical costs or college tutition.


Closed End Second Mortgage Loan

Closed end second mortgage loans are the most common type of this loan. These are more restrictive second home mortgages where you cannot borrow more money than the original loan amount. If you do need an additional cash infusion, you would have to take out an additional loan or mortgage refinancing loan.

Second Mortgage Loan for Debt Consolidation

One reason for a second mortgage loan is to consolidate debt into one single monthly payment. If you have high interest credit cards or confusing lines of credit that are lowering your disposable income each month. Second mortgage loans often carry a lower interest rate and can help you pay off your second home mortgage more quickly.

A Cautionary Note About Second Mortgage Loans

You have to be able to make your monthly mortgage payments. Even with a small second loan payment on your house, you can still lose your home if you do not or cannot make the payments. Before you get second mortgage refinancing, make sure you make the payments each month. These numbers are also a great item to show your lender in order to get the best second mortgage loan interest rate.

As be aware that taking equity out of your home in the form of a second loan is dangerous in a declining housing market. If you take out an additional loan on the increased value of your home and then the value of your home drops, you may have loans that exceed your original loan amount. While second mortgages are a good move during a strong housing market, they are risky in a declining market.

California Second Mortgage Home Loans

California second mortgage loans are popular as of late with the high costs of homes and the strong housing market. Low interest rate second mortgage loans give home owners additional cash to take on major home projects that should increase the value of the home and increase a homeowner's euqity. Orange county and San Diego second mortgage loans have been strong areas for second loans, as well as in states like Florida, Texas and Colorado.

Bad Credit Second Mortgage Loan

If your credit score is 520 or below, you will most likely need a bad credit loan. These loans will carry higher interest rates because the borrower has a more troubled past in paying off their financial burdens. In addition, bad credit loans will carry diffterent terms than tradition second loans and borrower's shouldn't enter into such contacts with reading and understanding the language and terms.