| Taking out a second mortgage after a bankruptcy can | | | | paying all of your bills on time. You can open a small |
| help you reestablish your credit. Because your home is | | | | credit card account and use this to help establish your |
| used as collateral, you will have a much easier time | | | | payment history; however, it is important to maintain |
| qualifying for decent interest rates when you have bad | | | | low balances on any credit card accounts you open. |
| credit. Here are several tips to help you find the best | | | | Making regular, on time payments on low credit card |
| second mortgage without losing your shirt in the | | | | balances will help you reestablish your credit history. |
| process. | | | | How Much Can You Expect to Pay for a Second |
| Having a bankruptcy on your record is a financial | | | | Mortgage? |
| hurdle that can be difficult to overcome. If you have a | | | | Second mortgages come with higher rates and fees |
| fair amount of equity in your home you can use this | | | | than you would pay for your primary mortgage. This is |
| equity to rebuild your credit rating. Responsible use of | | | | because the second mortgage lender assumes more |
| credit along with making all of your payments on time | | | | risk than the primary mortgage lender. If you have poor |
| is the first step to repairing your credit. | | | | credit or a bankruptcy on your record the amount of |
| How Long Can You Wait After Bankruptcy? | | | | risk goes up and the lender passes this risk on to you |
| It is possible to qualify for a second mortgage | | | | in the form of higher rates and fees. |
| immediately after your bankruptcy is discharged; | | | | For homeowners with poor credit a second mortgage |
| however, the interest rate you receive will be | | | | can be more affordable than a home equity line of |
| extremely high. The longer you wait before taking out | | | | credit. Second mortgage loans come with fixed |
| a second mortgage, the more affordable the interest | | | | interest rates and allow you to borrow a specific |
| rate will be. In as little as six months you can have | | | | amount of equity. It is important to shop from a variety |
| enough payment history with your existing mortgage | | | | of lenders to find the best loan offer for your financial |
| to qualify for a competitive interest rate. | | | | situation. You can learn more about shopping for the |
| Before you apply for a second mortgage it is | | | | best second mortgage by registering for a free |
| important to start building up your credit history by | | | | mortgage guidebook. |