Second Home Loan

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Use a Second Home Loan to Consolidate your Bills

Did you know you can use a second home loan to consolidate your bills? You can even borrow more than your house is worth, up to 25%. This can be a very helpful scenario, especially if you've run into a tight spot and have too many bills piling up every month. What happens is with a second home loan, you can take cash out to do whatever you want with, so you can put enough money towards your bills and then have some left over to do a few repairs or celebrate over a nice dinner out.

How much can I borrow?

With a second home loan, most lenders will let you borrow up to 125% of the value of your home. However, your ability to borrow cash with a second home loan will vary based on your credit score and value of your home. Be sure not to let a lender give you money based only on the value of your home or you will be stuck with a large payment every month that you can't actually afford. Make sure you take into consideration your ability to repay the debt, regardless of what the lender says.

How do I consolidate my bills?

You can consolidate your bills with a second home loan by simply taking the cash from the loan and paying off all of your credit card or other debts. This way you will most likely reduce your monthly interest payment from the typical 19% on a credit card to 10% or less by using the second mortgage loan to consolidate your bills. This reduction in interest will not only save you money on interest but you will be able to pay off your debt more quickly in one easy monthly payment.