2007-03-11 11:07:04 · 9 answers · asked by fashion 1 in Business & Finance ➔ Personal Finance
You could probably get a home equity loan. However, with bad credit, you'll be paying high interest.
Work on getting your credit score up. Pay all bills on time. Pay down your debt. Being over extended on credit cards and not paying the on time probably do more damage to your credit score than just about anything.
If you're using a home equity loan to pay off credit cards, that would probably be a decent plan but if you then go out and run up your credit cards again, you're going to be back in the same boat you were in before but you'll have a double payment as you'll still owe on the equity loan. You would likely lose your home if you stopped paying.
2007-03-11 11:19:42 · answer #1 · answered by Faye H 6 · 0⤊ 0⤋
A home equity loan is a really bad idea.
1. Why put you house on the line. Something comes up and you can't pay-goodby house.
2. Home equity loans can be called due anytime for any reason. The bank thinks you are getting to far in bebt they can call the loan due.
3. if your wanting the loan to pay off other debts you are not fixing the problem. You are just moving the debt.
not a good idea at all.
2007-03-12 00:53:50 · answer #2 · answered by heybulldog 5 · 0⤊ 0⤋
Depending of the nature of your terrible credit, your best luck may be a refinance of your 1st mortgage and pulling cash out that way. Most 2nd mortgage lenders are stricter being that they are in "2nd position" when it comes to recouping in the event of a default. You will not have that same great rate as your neighbor, but you will still be able to get a loan. The lower you keep the LTV (loan to value) also helps. This means you do not borrow against a high percentage of your homes value. The max you would be able to go without private mortgage insurance is 80%. Meaning if your home is worth $100,000, your loan amount would be $80,000. The lower you go, say 70% or 60%, you can actual get an improvement towards your rate. So for example, your rate on a 60% LTV would be better than your rate on a 80% loan to value. I would suggest a mortgage broker. A broker would have access to multiple lenders with different programs to suite your needs. Just an FYI - many lenders are changing and even dropping loan programs for "credit challenged". And subprimes lenders have actually started closing their doors. The real estate market values are leveling off and even dipping, maening changes to lending guidelines. I hope this helps, good luck!
2007-03-11 18:44:15 · answer #3 · answered by loan_wzrd 2 · 0⤊ 0⤋
Try refinancing your home. You can take out a part of the equity without worring about paying back a loan and still have equity left in your home. A mortgage comapny can help to clean up your credit and refinance.
2007-03-11 18:15:10 · answer #4 · answered by jr8551_us 2 · 0⤊ 0⤋
You can refinance:
Mortgage refinance has become a thriving business over the years. There are various reasons why you should refinance: reduce the interest burden by opting for a mortgage with lower interest rate, eliminate the risk of an adjustable-rate mortgage by taking fixed-rate loan, cash-out refinance where you turn the equity into money or increasing the period and lowering monthly payments.
But what you need to understand is that mortgage refinance brings its own share of costs like mortgage, loan application fees, loan origination fees, and appraisal fees. You as a property owner will have to bear these costs. But if the interest rate is sufficiently lower, you will save money. Calculate the savings on the interest and compare them with the total cost of refinancing and prepayment fines. Certain types of loans like fixed-rate mortgages have a prepayment penalty to prevent you from closing your mortgage account early by prepaying the outstanding balance prematurely. If the interest savings are more, you can easily go for refinancing.
2007-03-12 08:37:26 · answer #5 · answered by sing i 2 · 0⤊ 0⤋
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2007-03-13 09:42:09 · answer #6 · answered by Anonymous · 0⤊ 0⤋
Your bank, Fashion. You use your equity for collateral.
ST
2007-03-11 18:12:53 · answer #7 · answered by Anonymous · 0⤊ 0⤋
Visit my site at http://prosper.arnieosborn.com
The prosper network is run by the ex CEO of ELoans.
On my site you can join my group and we can work together to secure a loan for you.
2007-03-12 00:30:20 · answer #8 · answered by Arnold O 1 · 0⤊ 0⤋
with lots of equity you have the upper hand do you have a stead job too if so http://www.wesayes.com
2007-03-11 18:22:44 · answer #9 · answered by Anonymous · 0⤊ 1⤋