A second mortgage is a loan that is secured by the equity in your home. When you obtain a second mortgage loan the lender will place a lien on your house. This lien will be recorded in 2nd position after your primary or 1st mortgage lender's lien, hence the term second mortgage.
A second mortgage is also sometimes referred to as a home equity loan. There is no difference between a home equity loan and a second mortgage. These are just two different terms for the same subject.
A second mortgage can either be a fixed-rate loan or an adjustable-rate credit line. Interest rates and loan program terms will vary from lender to lender so it is important to shop around and compare before committing to any one offer.
Loan proceeds from a second mortgage loan can be used for just about anything. Many consumers take out 2nd mortgage loans to consolidate debt, do home improvements or pay for their kids college education. Whatever you decide to do with your loan proceeds it is important to remember that if you default on your payment you can lose your home so you will want to make sure that you are taking the loan out for a worthwhile purpose.
Another plus of a second mortgage loan is that the interest you pay back on the loan may be tax deductible. Consult your tax advisor regarding your personal situation but in most cases the interest is 100% fully deductible as long as the combined loan to value of your 1st and 2nd mortgage do not exceed the value of your home.
For more information on second mortgage loans, or to compare rates and programs of second mortgage loan lenders visit http://www.equityloansource.com
Levetta Rivera is a successful author and publisher of http://www.equityloansource.com . An informational and resource site for home equity loans.
Click here for more info on Mortgages
Tuesday, March 29, 2005
How Creditors Measure Your Credit Rating
Good credit is everyone's dream. A wise use of credit can go a long way. It certainly makes certain goals in life (like acquiring business loan from bank) easily attainable.
But the key question remains: "What does it take to achieve 'Triple A' credit?"
First and foremost, it is important it is critical to point out where most people go wrong when it comes to their credit and credit report. People with bad credit will usually seek credit repair help. Most would seek credit expert advice and few will try to do it themselves by purchasing a credit repair book.
Mainly, the problem is not the type of help you hire, rather the assumption you are left with after the whole credit repair process. Where most people go wrong is that once their credit report is free of any negative entries (or errors), they simply assume that they now have an excellent credit.
That's simply untrue.
In reality, your credit is not bad because you now have managed to erase the negative entries that was shown on your credit report before. At the same time, you do not have ' Triple A ' credit either. Unless, you have positive items or entries showing on your credit report.
And the key to a successful credit repair is not just getting rid-off the negative entries on your credit report, but rather to show-off that you have multiple positive entries on your credit report that can buy the confidence of your bank to loan you their money.
You can find numerous articles dedicated to guiding through the credit repair process, but few will discuss further than just repairing your credit. Meaning few will tell you (better yet, know about), "How to add positive entries to your credit report?".
It is very important you understand that, you can repair your own credit and make it flawless, better than anyone ever could. Today, there is so many help on credit repair help, but not all are legitimate help. And it is extremely important to keep that in mind.
If you want to avoid getting chopped-down by bogus repair companies, take the following two statements as an advice that will serve you a long way.
1- There is no law available to any credit repair company, expert, or attorney - that is not available to you as the credit consumer. 2- Credit repair companies use the same law made available to you by congress to repair your bad credit. And they certainly can not change the law for their clients.
The above two simple statements might seem obvious, but repeating them like a mantra can be the difference between getting ripped-off and getting the 'Triple A' credit you deserve.
Back to the main point - "How To Achieve Triple A Credit?"
Here you will learn two powerful and proven ways that will give you a sterling credit in the shortest time possible - 25 Days. Apply the following two techniques and, guaranteed, you will give your credit a face lift that would have banks open their check book.
1. A Millionaire's Credit in 25 Days.
Do you have a checking account and a savings account? Good. If you don’t, no worries, these days you can open an account online. It should take you no more than 5 minutes. You got your accounts opened? Good, now comes the second phase.
Phase 2: Now you will need your savings account to use it as a collateral. Now using your savings account ask your bank for a secured passbook loan.
You can borrow a dollar for dollar with a passbook loan. This type of loan works well with as little as $300, but if you have $10,000 - that’s even better. Once you secure a loan with a passbook you can not touch the funds until you have fully repaid the loan. Remember, you should be able to do with-out these funds for 30 days. A bank secured with your passbook loan has no risk in lending you money, so any bank should be willing.
Note: It is extremely important that the bank reports your loans to the credit bureau. Therefore ask your bank "If they report your payment history to the three credit bureaus?", it is critical part of this whole process. After all, the whole purpose of you doing this is to add zing to your credit report with a very powerful and positive payment history, right?
Now once you borrow the money, wait 25 days and repay the loan back to your bank. Because you have fully repaid your loan the bank will send your positive payment history to the credit bureau.
That's a grand slam!
Now you have the bank as your friend and the credit bureaus can not help it but report your good payment history.
2. How To Use $500 - $1000 into A Millionaire's Credit
With let’s say a $1,000 in your account, ask the loan officer for a 12- month a $1,000 passbook loan. Do not be discouraged, you can certainly achieve this with less money, but if you can afford to do it don’t hesitate. By the time you’re done with this technique - - - well it’ll be all worth it. Just wait and see. Since this is a secured passbook loan (meaning, it is secured by the amount of money available in your savings) most banks will not run a credit check. And if they tried to do so explain it to them why they should not as it is secured by the money you already have in your savings account. Which you won’t be able to access until you payoff your loan anyway, so there is no justified reason to run a credit check. Now with the $1,000 secured passbook loan from your first bank, open a savings account at another bank with the $1,000 loan received from the first bank.
The request that they give you a $1,000 12-month loan and do not mention the loan received from the first bank. Wait about a week or two, go to a third bank and repeat the process.
Next, at one of the three banks open a checking account with the $1,000 you received from the third bank. You now have a$1,000 in a checking account and three outstanding 12-month loans at three different banks – for a total of $3,000. Deduct your original $1,000 and you need only repay $2,00 plus interest.
Note: Make sure that you ask your bank if they have a pre-payment penalty because you do not want that.
Finally, about one week later start to pre-pay your three loans.
Now you have an advance payment record with three banks and will have established powerful credit for your credit report. From now on every type of loan and credit card will be yours for the asking. Here you are with un-touchable credit, three big banks as your future business friends, and a credit bureau reporting positive payment history – all in just under 30 days. You just learned about one of the very few techniques that can change your credit significantly within a month time. Of course you can apply these techniques for as long as you like and keep improving your credit. Apply these techniques discussed and you will get the Triple A credit you deserve.
------------------------------------------------------------------------------------
© Copyright -http://www.deleteuglycredit.com You have permission to publish this article electronically or in print, in your Newsletter, on your website, or in your E-Book, as long as the author's Resource Box is included with the article.
About the Author
Omar M. Omar is the owner of http://www.deleteuglycredit.com and - Author of "The Credit Repair Bible" book. The website is dedicated to providing credit consumers free advice on how to repair credit. It also provides credit consumers numerous information about their credit report, credit laws, and their rights as a consumer.
Click here for more articles on credit related issues
But the key question remains: "What does it take to achieve 'Triple A' credit?"
First and foremost, it is important it is critical to point out where most people go wrong when it comes to their credit and credit report. People with bad credit will usually seek credit repair help. Most would seek credit expert advice and few will try to do it themselves by purchasing a credit repair book.
Mainly, the problem is not the type of help you hire, rather the assumption you are left with after the whole credit repair process. Where most people go wrong is that once their credit report is free of any negative entries (or errors), they simply assume that they now have an excellent credit.
That's simply untrue.
In reality, your credit is not bad because you now have managed to erase the negative entries that was shown on your credit report before. At the same time, you do not have ' Triple A ' credit either. Unless, you have positive items or entries showing on your credit report.
And the key to a successful credit repair is not just getting rid-off the negative entries on your credit report, but rather to show-off that you have multiple positive entries on your credit report that can buy the confidence of your bank to loan you their money.
You can find numerous articles dedicated to guiding through the credit repair process, but few will discuss further than just repairing your credit. Meaning few will tell you (better yet, know about), "How to add positive entries to your credit report?".
It is very important you understand that, you can repair your own credit and make it flawless, better than anyone ever could. Today, there is so many help on credit repair help, but not all are legitimate help. And it is extremely important to keep that in mind.
If you want to avoid getting chopped-down by bogus repair companies, take the following two statements as an advice that will serve you a long way.
1- There is no law available to any credit repair company, expert, or attorney - that is not available to you as the credit consumer. 2- Credit repair companies use the same law made available to you by congress to repair your bad credit. And they certainly can not change the law for their clients.
The above two simple statements might seem obvious, but repeating them like a mantra can be the difference between getting ripped-off and getting the 'Triple A' credit you deserve.
Back to the main point - "How To Achieve Triple A Credit?"
Here you will learn two powerful and proven ways that will give you a sterling credit in the shortest time possible - 25 Days. Apply the following two techniques and, guaranteed, you will give your credit a face lift that would have banks open their check book.
1. A Millionaire's Credit in 25 Days.
Do you have a checking account and a savings account? Good. If you don’t, no worries, these days you can open an account online. It should take you no more than 5 minutes. You got your accounts opened? Good, now comes the second phase.
Phase 2: Now you will need your savings account to use it as a collateral. Now using your savings account ask your bank for a secured passbook loan.
You can borrow a dollar for dollar with a passbook loan. This type of loan works well with as little as $300, but if you have $10,000 - that’s even better. Once you secure a loan with a passbook you can not touch the funds until you have fully repaid the loan. Remember, you should be able to do with-out these funds for 30 days. A bank secured with your passbook loan has no risk in lending you money, so any bank should be willing.
Note: It is extremely important that the bank reports your loans to the credit bureau. Therefore ask your bank "If they report your payment history to the three credit bureaus?", it is critical part of this whole process. After all, the whole purpose of you doing this is to add zing to your credit report with a very powerful and positive payment history, right?
Now once you borrow the money, wait 25 days and repay the loan back to your bank. Because you have fully repaid your loan the bank will send your positive payment history to the credit bureau.
That's a grand slam!
Now you have the bank as your friend and the credit bureaus can not help it but report your good payment history.
2. How To Use $500 - $1000 into A Millionaire's Credit
With let’s say a $1,000 in your account, ask the loan officer for a 12- month a $1,000 passbook loan. Do not be discouraged, you can certainly achieve this with less money, but if you can afford to do it don’t hesitate. By the time you’re done with this technique - - - well it’ll be all worth it. Just wait and see. Since this is a secured passbook loan (meaning, it is secured by the amount of money available in your savings) most banks will not run a credit check. And if they tried to do so explain it to them why they should not as it is secured by the money you already have in your savings account. Which you won’t be able to access until you payoff your loan anyway, so there is no justified reason to run a credit check. Now with the $1,000 secured passbook loan from your first bank, open a savings account at another bank with the $1,000 loan received from the first bank.
The request that they give you a $1,000 12-month loan and do not mention the loan received from the first bank. Wait about a week or two, go to a third bank and repeat the process.
Next, at one of the three banks open a checking account with the $1,000 you received from the third bank. You now have a$1,000 in a checking account and three outstanding 12-month loans at three different banks – for a total of $3,000. Deduct your original $1,000 and you need only repay $2,00 plus interest.
Note: Make sure that you ask your bank if they have a pre-payment penalty because you do not want that.
Finally, about one week later start to pre-pay your three loans.
Now you have an advance payment record with three banks and will have established powerful credit for your credit report. From now on every type of loan and credit card will be yours for the asking. Here you are with un-touchable credit, three big banks as your future business friends, and a credit bureau reporting positive payment history – all in just under 30 days. You just learned about one of the very few techniques that can change your credit significantly within a month time. Of course you can apply these techniques for as long as you like and keep improving your credit. Apply these techniques discussed and you will get the Triple A credit you deserve.
------------------------------------------------------------------------------------
© Copyright -http://www.deleteuglycredit.com You have permission to publish this article electronically or in print, in your Newsletter, on your website, or in your E-Book, as long as the author's Resource Box is included with the article.
About the Author
Omar M. Omar is the owner of http://www.deleteuglycredit.com and - Author of "The Credit Repair Bible" book. The website is dedicated to providing credit consumers free advice on how to repair credit. It also provides credit consumers numerous information about their credit report, credit laws, and their rights as a consumer.
Click here for more articles on credit related issues
4 Simple Ways to Solve Your Debt Burden
Getting Behind
Getting behind on your debts owed can be a very frustrating and trying time for you and your family. Depending on how far behind you are, there are other repercussions, such as your credit rating, that will affect you further down the road.
Examine Why
Why did you get behind in the first place? This is a very important question in helping you understand what you need to do to get out of this predicament, and prevent your self from getting into the same or similar situations in the future. Was it your spending habits or not properly planning for emergencies? In any case, track down the cause, change your spending habits, and you will bring about a different effect.
Create a Budget
The necessary evil. This is where many people get tripped in planning for their financial future. Creating an accurate budget allows you to see exactly what is coming in and going out. It allows you to see what you can put away for Christmas, birthdays, office parties, etc. When trying to determine how to pay your debts, this is one of the first steps towards and informed decision.
Cut Your Bills in Half
Sometimes, it may come down to paying on the debt or eating. We know who wins this. The way I have found that both sides can somewhat win is to split your debt payment into two. If you get paid this week on Monday, talk to your creditor and ask if it is possible for you to pay half this check, and half the next. Rather than get nothing at all, most creditors will agree.
Add a little extra each payment. If you have a bill that costs you $50 a month, sending $30 each pay period probably will not hurt you as bad, and you begin to get ahead of your payments if you pay the little extra. Getting ahead of your payments can save you money on the interest that you are paying, provided you note the extra money is toward the principal. Some companies apply the extra money accordingly, whereas others need it to be specified.
Get Money Wise
For you to be reading this article, lets me know that you are working on this. Read as many articles and books as possible, as this is your ammunition to fight the war against debt. Also, you may be able to help someone else overcome these issues such as a loved one.
Take Action Today!
There is no better time than the present to get started. The sooner you begin your financial action plan, the sooner you will be saying good bye debt, hello financial freedom.
------------------------------------------------------------------------------------
Gordie Prescott is a motivational speaker and success coach in the areas of personal, career, and financial success. Gordie also owns GordiePrescott.com and the Money Matters website.
Click here for more Debt help and advice. Click here for more General Finance help and advice
Getting behind on your debts owed can be a very frustrating and trying time for you and your family. Depending on how far behind you are, there are other repercussions, such as your credit rating, that will affect you further down the road.
Examine Why
Why did you get behind in the first place? This is a very important question in helping you understand what you need to do to get out of this predicament, and prevent your self from getting into the same or similar situations in the future. Was it your spending habits or not properly planning for emergencies? In any case, track down the cause, change your spending habits, and you will bring about a different effect.
Create a Budget
The necessary evil. This is where many people get tripped in planning for their financial future. Creating an accurate budget allows you to see exactly what is coming in and going out. It allows you to see what you can put away for Christmas, birthdays, office parties, etc. When trying to determine how to pay your debts, this is one of the first steps towards and informed decision.
Cut Your Bills in Half
Sometimes, it may come down to paying on the debt or eating. We know who wins this. The way I have found that both sides can somewhat win is to split your debt payment into two. If you get paid this week on Monday, talk to your creditor and ask if it is possible for you to pay half this check, and half the next. Rather than get nothing at all, most creditors will agree.
Add a little extra each payment. If you have a bill that costs you $50 a month, sending $30 each pay period probably will not hurt you as bad, and you begin to get ahead of your payments if you pay the little extra. Getting ahead of your payments can save you money on the interest that you are paying, provided you note the extra money is toward the principal. Some companies apply the extra money accordingly, whereas others need it to be specified.
Get Money Wise
For you to be reading this article, lets me know that you are working on this. Read as many articles and books as possible, as this is your ammunition to fight the war against debt. Also, you may be able to help someone else overcome these issues such as a loved one.
Take Action Today!
There is no better time than the present to get started. The sooner you begin your financial action plan, the sooner you will be saying good bye debt, hello financial freedom.
------------------------------------------------------------------------------------
Gordie Prescott is a motivational speaker and success coach in the areas of personal, career, and financial success. Gordie also owns GordiePrescott.com and the Money Matters website.
Click here for more Debt help and advice. Click here for more General Finance help and advice
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