Second Mortgage Shop

Two lenders are telling me it will be the BEST thing i ever did for myself. I have 3 bad debts and a FICO of 551.

Why am I going to pay THREE TIMES over in interest to "make these go away" and put my house as collateral….changing an unsecured debt to a huge secured one? Seems like a no brainer….

Why do so many people do it? Am I missing a key benefit?
I havent done it …pretty sure i wont.

There's no key benefit, just a sales pitch.

Essentially, you need to focus on debt reduction. You need a written budget and you need to stick to it. A budget isn't a negative thing, it's a positive thing. It's a plan. It keeps you on track.

I paid of $19,980 in 15 months! How? I had a plan and I stuck to it. Now, I have a paid for pickup and nothing in debt except the house. And while I'll like a new F250, a John Deere and new saddle for the horse, I'm saving up.

Cash is King.

I know what a home equity loan is but not sure about a line of credit-which one would you recommend?

A home equity line of credit (HELOC) is a revolving account, compared to a loan you take out against your house. In laymen's terms, it's a home equity "credit card" without the plastic card or the high interest, and the amount on your "card" is within the amount of equity you have in your home.

I ask this because most lender said I have to refinance my 1st in order to pay off my 2nd, but if I do that because of my low credit score my interest will go way up and it will double what I am paying now. Is there a solution?

Like I said previously. FHA home loan. I'm a mortgage broker, I work for Summit Capital Lending. The women on the other question who refinanced her second is an idiot. Even if you're first goes up some what you'll still end up paying much more with a lower first and a higher second. With low credit you probably won't even being able to refinance a hoam equity loan. Depending on what state you live I might be able to help you. You can contact me via email at magula.summitcapital@gmail.com
My names Matthew

I am financing a pool and was told by the lender that a refinance and a second mortgage are the same thing. Is that correct?

No. A refinance gives you a new mortgage with a lower interest rate.

A second mortgage is a mortgage taken out on property that already has one mortgage, with priority in settlement of claims given to the earlier mortgage. In other words, you have two mortgages.

My first is a 30 year fix at 5.6% , my second is fixed too but really high interest rate, 15.6%. Together I am paying roughly $1400 a month!

you shouldnt touch the first!
but definitely refinance the second.

the rates today are around 6.25%…….

you could wait to refinance the 2nd mortgage….and hope the FED lowers the prime rate again.