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How to Use a 2nd Mortgage for Refinancing Debt

In most cases owning a home presents people with more options to leverage debt with simple interest amortization and potential tax deductibility.

Paying Off Debt with Second Mortgage Versus Filing for a Bankruptcy

Are you drowning in debt? Have you considered filing for bankruptcy? Filing for bankruptcy has changed a lot since the new laws have been in effect. Here are some of new requirements you must meet before filing:

  • All debtors must go through consumer credit counseling and additional counseling on budgeting and debt management before they can file for bankruptcy.
  • You used to be able to choose which chapter under which you could file. Under the new law, an income means test determines whether you can file under Chapter 7 or Chapter 13. Some filers with higher incomes are prohibited from using Chapter 7.
  • The new bankruptcy laws impose new, stricter requirements on lawyers, so it is tougher to find an attorney to represent you in a bankruptcy case.

So, what are your options? You can go through a credit counseling and debt consolidation program, but those don't actually lower your debt. The debts are instead just combined, and you just make one payment each month. However, that payment can be more than what you used to pay when you were paying the debts individually. Debt elimination programs will eliminate the debts, but you will be taxed at the end of the year for the forgiven amounts. For example, if you owe $15,000 on a credit card and have it settled for $5,000, you will be taxed for the $10,000 that was eliminated. 15 Reasons Why Homeowners Should Take Out a 2nd Mortgage Loan

If you own your home, you might consider a cash-out or debt consolidation home equity loan (second mortgage). Some loan programs don't even require equity or appraisal, which will save you money. The cash out can pay off collections and judgments, as well as high-interest credit card, personal loans and tax liens. Remember, tax liens are generally not dischargeable by bankruptcy under the current laws. And, interest on your 2nd mortgage may be fully tax deductible depending upon your situation.

11 Signs It's Time to Refinance Your Mortgage

Compounding universal default rates of up to 30% and skyrocketing late fees can make your debt situation even worse to the point where you may end up foreclosing and losing your house. Get the second mortgage before your house goes into foreclosure. Then, cut up all but one of your credit cards. But, don't close the accounts or your credit history will appear younger than it actually is.

According to, your credit report lists what types of credit you use, the length of time your accounts have been open and whether you've paid your bills on time. The length of time your accounts have been open is your credit history. And, your credit history makes up 15% of your FICO credit scores.

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Manage Your Debt Better with a 2nd Mortgage

- Fixed Rate 2nd Mortgages
- Fixed Loan 2nd Term
- Fixed Loan Payment
- Closed End Home Equity Loans
- Principal & Interest Payments
- Pay Interest on entire Loan
- Great for Debt Consolidation
- Great for Peace of Mind
- Great Long Term Cash

Free Quotes for a
Home Equity Loan

· Refinance your existing 2nd mortgage
· Convert your adjustable rates to a Fixed Rate Loan
· Rebuild your credit & Raise your Scores
· Get Cash Out
· Finance Home Improvements
· Refinance your home



Apply Online or Call our Friendly & Experienced Loan Department for a Free Quote

Nationwide Mortgage provides solutions for financing after a bankruptcy.

Get B.K. home equity Loan options for any of the reasons below:

  • Recently filed a Ch. 13 Bankruptcy
  • Recent Ch. 7 discharge OK
  • Late on mortgage
  • In a forbearance agreement
  • Every other lender has said "no"
  • Pay off your Ch.13 bankruptcy
  • Prevent your home from going into foreclosure

(Totals you owe)
Amex $10,500 $270
Master-card $6,800 $230
Visa $5,700 $188
Home Depot $3,500 $110
Sears $3,250 $88
Variable Credit Line $50,000 $479
Total $79,750 $1,365
New Loan
9.5% Mortgage Rate
$82,000 $1,689 a month
Our loan Saves you $676 a month and $8,112 a year!


This is not an advertisement for credit. See Privacy for Details. Nothing on this web site contains an offer promise either to make a mortgage loan or that any participating lender will guarantee any home loan for any purpose or on any specific terms. Loans cannot be made online or be approved without an underwriter analyzing your credit score, debt to income ratio and combined loan to value.

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