Finding a 2nd Mortgage

In times of financial uncertainty, you need to be aware of all your available options. Credit cards may seem to offer some short term relief, but any financially prudent person will tell you that they’ll only get you deeper into debt in the long run. Payday loans are even worse, charging exorbitant amounts of interest for a short term non-secured loan. If you’re in need of a significant amount of cash, your best bet is to work with a bank or financial institution, as these provide the best security and the most flexible terms. Personal loans are ideal when you’re in need of small amounts of money, but for situations when you’re in need of significant amounts of cash, your best bet is a second mortgage.

A second mortgage is a secured loan that uses an already mortgaged property as its collateral. Using your home or a property as collateral will guarantee that you’ll be able to borrow a larger amount of cash than possible through other means. And since you’re dealing with a bank or some other established financial institution, you will have some flexibility with negotiating the repayment terms of your second mortgage. Financial institutions are also more inclined to clear second mortgages than other types of loans. Because the loan is secured with some collateral of significant value, they view them largely as good long term investments. There are also a few different types of second mortgages that you can apply for.  The first is a straight out loan with a single large payout that must be paid out over a fixed time period under an agreed upon set of conditions. The second type of second mortgage is a line of credit, in which the borrower isn’t given a large cash disbursement immediately, but is allowed to borrow smaller amounts of money several times using the property to secure the loan.

Since the second mortgage is subordinate to the first, it will have a higher interest rate. This is because the lender’s risk is much higher, since the first mortgage will be paid off first should the borrower default. Just how much higher the interest rate will be is going to depend on several key factors that the bank will consider before granting you your second mortgage. These factors include how much equity you have in your first mortgage loan, your debt to income ratio, your credit history, and your employment history. What you’ll use your second mortgage for can also be a factor in getting you the best possible deal. If you’re using the money to help fund an investment or a business, then banks may be more willing to hand out flexible terms than if it were to be used for a vacation or the treatment of an illness.

When taking out a second mortgage on a property, it is best to lay out all your options. Shop your property around different banks in order to get the best deal. Have an idea what your property is worth via an appraisal or a market evaluation. This will give you a rough idea of how much you should be getting. Do business with a bank or lender that you can trust. Some unscrupulous institutions may try to reel you in with a seemingly good deal, and then lock you in under less than favorable terms. Be aware of any second mortgage fees or default penalties that the bank may try to lay on you, both up front and when the mortgage is paid off there may be a discharge fee.  These could end up making the repayment of your second mortgage next to impossible, and place you in even greater debt. Some mortgages may seem affordable at first, but could end up having huge payments due towards the end. Such plans are called balloon payments, and these can sneak up on unwary homeowners who neglect to read the fine print.  Finding a good mortgage broker may help to find you the better deal.

How To Get Same Day Cash Without A Payday Loan

Many people assume that a payday loan is the only way to get same day cash.  This is untrue and a very expensive decision.  Sure, a loan like this will get you the cash that you need almost instantly, but due to its high risk and price it’s important that you at least check out other options first.  In the end you may still need a loan, but with the other ways to get money that we’ll discuss in this post, you’ll definitely need to borrow a heck of a lot less!  In the best case scenario you can use the tips here to cover all of the cash that you need, then be able to laugh at those who waste their cash on a loan!

Before we get started it’s important that you know why a payday loan is almost always a bad idea.  Due to the high price and short terms, you are going to have a hard time coming up with enough cash to repay the loan and still pay your bills after the next payday.  If you have to pay back a $750 loan on your next payday, how much will you have left over to eat and pay bills?  That is the important question that most people don’t ask themselves before applying for a loan.  In the case that you’ll still have plenty of money leftover, then a loan might be a good idea.

There are a lot of different ways to make money fast.  Excluding borrowing it, selling stuff and earning money are going to be the easiest way to do so.  The rest of this post will be dedicated to sharing ideas for each of those that will be easy, and available to just about anyone.

Selling Stuff For Same Day Cash

If you have a house full of stuff that you don’t use very often, like I do, you can sell most of it to cover your short term financial needs.  There are a couple of ways to do this: online and locally.

To sell your stuff online you can use eBay, but expect that you’re going to need at least a week in order to sell everything.  Even once everything sells there will still be an additional delay in transferring money from Paypal into your bank account.  Selling your stuff on eBay is very effective, but not the fastest way to do it.

Instead, use Craigslist.  If the stuff that you have is something that people buy, it will sell very quickly.  Be sure to take good pictures and offer a detailed description of your wares to help it sell faster.  It helps a lot to have somebody help you with this, and you’ll thank them when they help you out in a sticky price negotiation.

Selling stuff locally is generally done at a yard or garage sale.  It’s easy to put these together in a moment’s notice, and you’ll be very successful if you live in an area that naturally has a lot of traffic.

Should you not have the time to put together a yard sale, pack everything up and head to the pawn shop.  Clean your stuff up well before doing this to make sure that you get as much as possible for it.  Pawn shops buy tools, jewelry, guns, bikes, and music equipment the most, but will consider buying anything else you have.

Earning Money Today

Assuming you have a couple of extra hours on your hands, you can earn money very quickly.  Start by talking to those around you, explain your situation, and see if they have anything you can do for them to earn a few bucks.  Generally you will do things like babysitting, yard work, cleaning, and cooking, but if you have specific skills you may be able to lean on those.

In the case that you can’t get a gig like this, turn again to Craigslist.  Once you specify your area, click on the Etc. section to see all of the odd and random jobs that are available in your area.  There is going to be a lot of stuff to sort through, but you’ll see jobs like taste testing and passing out fliers, and these jobs are going to pay cash at the end of the day.

Use the ideas discussed above to find something that’s going to get you the cash you need without a payday loan.  It isn’t hard, and you may be able to cover all of your expenses with a day’s work!

How To Avoid The Perils Of Payday Loans

For almost everyone who is short on cash, a payday loan is a bad idea.  It’s going to cause more problems than it solves, and can put people into a debt spiral that’s nearly impossible to get out of.  Fortunately, there are a few things that you can do to circumvent the need for a payday loan.  All of these things are fairly easy, and carry much less risk than fast cash loans.  In this post I want to break down why payday loans cause so many problems for people, and some simple alternatives that you won’t regret later!

Why Are Payday Loans So Bad?

Many people assume that the only way to get fast cash is to get a loan.  This leads them to applying for loans without considering what their other options may be.  This normally wouldn’t be a major problem, but a loan of this type is so expensive that people simply can’t afford to repay it!  When faced with the choice between feeding the family for the next two weeks, or paying a loan back, survival instincts start to kick in.

How expensive are these loans?  On average, you’re going to pay 25 bucks for each 100 that you borrow.  This equals out to $700 costing $875, or a major chunk of your paycheck gone before you have the opportunity to spend it on something else.  The only way that you can make this work out in your favor is if you can make a lot more money between the time that you accept the loan and you pay it back.  If you don’t bring in some extra cash you’re going to end up just as broke next payday as you are today.

This problem becomes compounded if you’re late or fail to pay the loan back.  The interest rate and fees go through the roof as soon as your account hits collections, and it will quickly become more debt than you’re going to have a shot at paying back.

So What Else Can You Do?

The amount of time that you have from now until you absolutely need cash will determine how you get it.  More time offers many more options, so read through this section with your monetary deadline in mind.

A major chunk of your paycheck goes to paying taxes, and with some simple adjustments you can take home all of that cash for a few paychecks.  Reducing the amount that you withhold from your paycheck will put a major bump in your next payday.  You can do generally do this through your HR department, or manager in small companies.  The risk here is that if you don’t adjust it back to where it was, you’re going to be stuck paying a ton of taxes next year.  Don’t get used to the extra money, just use it for a couple of checks then go back and fix it.

If you have a lot of stuff laying around your house that you don’t really need, you can turn a lot of it into cash.  There are a lot of ways to do this, so choose whichever is going to be the easiest for you.  Craigslist is a good way to sell off a lot of stuff rather quickly.  You get the option to set a price, which is going to yield more cash than going somewhere like a pawn shop.  Another option is to throw together a quick yard sale.  These work really well if you live in a naturally busy neighborhood, but take some promotion if you live somewhere that’s quiet.

For those that have extra time on their hands, you can pick up some odd jobs to help make ends meet.  Jobs that pay cash like this will range from day labor to some pretty bizarre stuff, so be picky with what you choose.  To find a gig like this, turn to the classified section of your local paper or the “etc.” section of Craigslist in your area.  There are tons of different options out there, so be sure to find something that you don’t have a problem doing.

There are a ton of different alternatives to payday loans out there.  Any of the three discussed above will put a major chunk of cash in your pockets fast.  The key is to be both creative and resourceful and you’ll have no problem at all getting the money that you need to keep your life moving in the right direction.