Getting a Bad Credit Home Equity Loan in Edmonton
Having bad credit can leave you feeling helpless particularly if you have unsuccessfully tried to apply for a loan. It is worse if you recently changed your employer or previously struggled to meet your financial obligations. However, bad credit home equity loans offer you leeway obtain financing.
What Is a Home Equity Loan? How Do You Qualify With Bad Credit?
When seeking a home equity loan, you are using your home as collateral. However, the home equity loan does not take the first lien mortgage but instead assumes the second position. In essence, you are borrowing the difference in the value (equity) of your Edmonton home and the balance on your first lien mortgage but less twenty percent. The loan is availed in two options.
Home Equity Lines of Credit (HELoC)
HELoCs are pretty much like your credit card. A specified sum at a variable interest rate is assigned to you from which you can draw as the need arises. You can use the amount as you wish which expectedly should be to better your financial situation. Additionally, the interest rate is typically lower than you would receive on a credit card.
Fixed Rate Home Equity Loans
The sum lent to you on this loan is based on the amount you require and your eligible home equity value. Through the agreement, you are fixed to a specified rate with regular payments that span a specified period typically between 25 to 30 years. The lump sum value of the loan and structured payment plan may be just the lifeline you need to turn your financial situation around.
While BMC Mortgage & Investments is committed to ensuring that you secure bad credit home equity loans, it is important to get a handle on your finances. Borrowing against your home can be risky particularly if you don’t manage your spending habits and fail to actively engage with a consultant to better your financial situation.
On the upside, the bad credit home equity loans can mean a whole new beginning of financial prosperity for you. And, with Edmonton’s BMC Mortgage & Investments, you have more than a bad credit home equity lender, you have a trusted partner to help you shape your financial future. Contact us today to transform your financial future for the better.