Borrowing money is not a sin. Knowing when not to stop borrowing and start repaying is a sin.
Most people fall prey to this sin at different stages of life. Some are fortunate enough to realize the hazards of financial instability at an early stage in their life and learn better lessons from the situations. But some people are not aware enough to learn the lesson. They keep on accumulating debts one after the other until a breaking point is reached, and that’s when they fall into the trap of endless debts.
Fortunately, there are still ways in which one can claim the quality of life back with the help of an expert mortgage broker.
Bad credit mortgage and things to know before applying for one
One of the easiest ways out of a dangerously out of hand debt situation is a bad credit mortgage. It is a tool that is used by borrowers to consolidate their debt profile and get stability during a financial crunch.
A bad credit mortgage is useful for people with multiple debt portfolios. The bad credit mortgage although has a very high-interest rate, but it can be viewed as a savior since the multiple loans can be paid off and now you can start life afresh. To refinance a private mortgage is the best option when it comes to consolidating multiple debt portfolios.
A bad credit mortgage can be availed depending on the monthly income, your pending equity on the assets mortgaged, etc.
Second mortgage and things to know about it
A second mortgage is similar to a bad credit mortgage. But in a second mortgage, your equity of assets is to be surrendered for availing a mortgage.
If you have 25-30% of equity on the already mortgaged asset, only then you can avail of the benefit of a second mortgage. Apart from surrendering a quarter of the asset equity, one is bound to pay abnormally high-interest rates every month.
This EMI includes a portion of interest and principal. So, the repayment of the entire schedule of the mortgage becomes easier. But still, one needs to be cautious about the interest rate. Do not avail of a second mortgage if you think repayment is not possible. Taking the advice of expert mortgage brokers can be helpful.
All in all, these are ways in which a dangerous financial crisis can be overcome. Always remember that it is best to keep track of your financial journey and hire the best finance broker when in need.