Debt consolidation mortgages are increasing in popularity because they can lower your payments and offer additional tax deductibility that credit cards do not offer.
According to Dan Ambrose of Irwin Home Equity, "Consolidating the compounding interest from credit card debt can save you thousands of dollars a year." We suggest consumers consider a fixed debt relief mortgage solution that allows consolidation of high rate loans and revolving accounts that have high rates of interest." The most effective mortgage for refinancing debt depends on the size and current rate of your 1st mortgage.
Fair Isaac also gives the following advice on shopping for your home equity mortgage loan, so you don't end up lowering your FICO score even more with too many inquiries: Looking for a mortgage or an auto loan may cause multiple lenders to request your credit report, even though you're only looking for one loan.
To compensate for this, the score ignores all mortgage and auto inquiries made in the 30 days prior to scoring.
The following will help you get the best possible rate for your bad credit second mortgage loan and provide tips on how you can work towards raising your FICO scores, so you can get better rates later on.
Before shopping for a loan, first order you credit reports from each of the credit reporting agencies, as described in "How to Improve Your Credit Score".
A debt consolidation loan will save you hundreds of dollars every month by consolidating those high-interest credit card balances, car loans, and other costly debts into a new low-interest home loan with one monthly payment.
It is possible to consolidate your debt by accessing the equity that is in your home.
If your first mortgage rate is low, but you still want to consolidate your debts, rather than a mortgage refinance, a second mortgage may be your best bet.
It could even help raise your FICO scores, and the rates will definitely be less than that of credit card debts.
Plus, you could enjoy a 100% tax deduction on the interest you pay on your loan.
This will save you the time of specifying your location each time you access our site.
Please rest assured that this information will never be used for any purpose other than displaying the appropriate regional web content.But, if you've had a past bankruptcy or otherwise have bad credit, you may wonder if you can even secure a second mortgage with a fixed mortgage rate that could help control the compounding interest of credit card debt.