PITI the Fool - Second Mortgage

Second Mortgage - Sucka Foo'

I get recognized. Whemn I walk down hte street people know who I am and they know what i can give them. T, they say, hey T I need your advice! What do you think about second mortgages? What do I think? What do I think about that second mortgage you can borrow off your home equity? I think you gotta get ready for some serious ...gain! Not pain sucka chump, gain!

The unstoppable second mortgage

There ain't nothing wrong with taking out a second mortgage to help you improve your financial life:

you bought that home, you kept up on monthly payments and along with appreciation rates you gained some home equity
now use it, use that financial base you've built up for your greater good. Pump some real financial iron and take out equity loans with the lowest possible mortgage rates because you have equity and that repayment is secured.
use your second mortgage on things that make or save you money - invest in stocks, invest in your home through home improvements, take out some mortgage loans and buy those major purchases with low interest.

With home equity you are the all star financial candidate lenders are looking for! There only be a few reasons why any sucka chump with a home wont succeed with a second mortgage, but you still gotta watch out or you're likely to get hurt and really feel the financial pain.

Second mortgage pain - yeah, it hurts

Not every second mortgage is all about gain or financial savings on your outside life. Some people overextend their financial abilities and take out more in a mortgage than they can actually afford. With first mortgages its fine - the interest only mortgage is available to allow people to buy much more than they might otherwise qualify for and make preparations for a future rise in monthly mortgage payments. But with a second mortgage you cant make that assumption - you already have one mortgage to worry about and you will probably have difficulty paying another. So when a chump mortgage fool offers you 125% equity financing, hit him upside the head and tell him I piti the fool who be trying to dig me deep into debt!