http://www.adjustableraterefinance.com/mortgages/second-mortgages.html Second mortgages can hurt us. What factors could make obtaining second mortgages bad for us? en-us Thu, 08 Sep 2005 08:57:03 EDT Thu, 08 Sep 2005 08:57:03 EDT Weblog Editor 2.0 Despite, the ongoing American love affair with second mortgages, obtaining a second mortgage can actually be bad for us. Here are some pointers from the Federal Trade Commission (FTC): Do not agree to second mortgages if you do not have enough income to make the monthly payments. You could go into default very quickly and lose your home, and adjustable second mortgages will leave you completely unprepared for any rate changes. No home mortgages' document should be signed if there are blank spaces to be filled in after you sign. Do not agree to second mortgages that includes credit insurance or any added products that you do not want. You may want to shop around for the best credit insurance rates if it is a required condition of the loan. Do not deed your property to anyone. Consult a lawyer, a knowledgeable family member or a friend that you trust. Keep careful records of what you've paid, including billing statements and canceled checks. Be sure and challenge contested or inaccurate charges. Second mortgages can be harmful to your financial well-being When getting second mortgages it is important to read over everything very carefully. Sometimes, lenders will include all sorts of conditions and fine-print that is advantageous to the lender - but everything is negotiable. For example, pre-payment penalties are not uncommon but if you ever want to consider refinancing try to bargain away that penalty. If you want to pay off your loan early, you should not have to pay a 10% fee to do so! With second mortgages - and mortgages in general - you can have your rate increased for missing a payment or for just being late. Avoid late payements because it could cost you plenty. Breaking down equity affordability Whether you need bad credit second mortgages or mortgages against equity you might not yet have, there is a better way to search for a second mortgage - affordable second mortgages do actually exist: Make sure you get an advantageous rate. They'll be higher than your first mortgage, but if you have the equity - and if you have a valid plan for using that equity - low rates are almost a certainty. When you can, try to secure fixed rate second mortgages rather than risk an adjusting rate. Unfortunately HELOC's only come in adjustable rates, but the standard second mortgage can come in a fixed form. If you don't have the equity, don't borrow! The days of 125% equity financing are over when rates increase and home prices stagnate - which is exactly what's happening so don't over extend your finances. Be careful with your equity, and be sure you can afford the costs of home equity financing. Thu, 08 Sep 2005 08:57:03 EDT http://www.adjustableraterefinance.com/mortgages/bad-credit-second-mortgages.html Bad credit second mortgages are an affordable reality for millions of American homeowners. Look into bad credit second mortgages and see if thy are right for you. en-us Thu, 08 Sep 2005 10:43:33 EDT Thu, 08 Sep 2005 10:43:33 EDT Weblog Editor 2.0 http://www.adjustableraterefinance.com/mortgages/fixed-rate-second-mortgages.html Fixed rate second mortgages are the smart choice for today's increasing interest world. Don't risk your rates - take out fixed rate second mortgages and use your equity wisely. en-us Thu, 08 Sep 2005 10:22:28 EDT Thu, 08 Sep 2005 10:22:28 EDT Weblog Editor 2.0 http://www.adjustableraterefinance.com/mortgages/adjustable-second-mortgages.html Adjustable second mortgages are available in all forms and sizes - just be careful that those adjustable second mortgages don't grow beyond your financial control. en-us Thu, 08 Sep 2005 09:52:05 EDT Thu, 08 Sep 2005 09:52:05 EDT Weblog Editor 2.0 http://www.adjustableraterefinance.com/mortgages/affordable-second-mortgages.html Affordable second mortgages aren't just a dream - they can happen, and everyone can find affordable second mortgages if they only look. en-us Thu, 08 Sep 2005 09:40:46 EDT Thu, 08 Sep 2005 09:40:46 EDT Weblog Editor 2.0