I don't know too much about loans and haven't had time to go into a bank to ask. Is anyone familiar with personal loans? I have a first and second on my home and am upside down on my mortgage. Would I qualify for a personal loan, which would be used to pay off my high interest second?
It will depend on the bank, credit rating, current ratings, etc.
Try a credit union - they often have MUCH better rates and terms. We belong to an educators CU because my MIL is a retired teacher. We buy our cars thru them and they hold our mortgage.
If you have a strong relationship w your current mortgage holding bank, start there, but I'd shop around too.
It would probably depend on what you have to offer in the way of collateral. Since you have a first and second on the home, the house can't be used. If your mortgage payments are current and your credit score is good, you may be able to get one. I will say that getting loans these days is quite the process; I recently refi'd my house and wanted to hang myself!
The only way have seen this done was with all the credit debt paid off .
Good luck
My first thought was to refinance either the first, second or both to a lower rate.
ouch! this sucks.
I don't know your personal credit score. If you are upside down in your mortgage - and are doing this personal loan to pay of the high interest - I would say NO.
I would say refinance the house - if the bank will let you and meld both the first and second on the home...if you can do some renovating to help with the equity - that might help as well - I don't know.
You would need to talk to the loan officer, have your house evaluated for true value and see where you can go from here!!
GOOD LUCK!!!
Getting a personal loan without collateral (with the exceptions of small lines of credit) is pretty difficult especially with the current economy. The previous posts are correct, you will be better off trying to refinance your second. A lot of this will depend on how your credit score is and your current income. Is your last appraisal less than a year old? If so then you can re-use it. If not you will probably be required to get another one. I worked in the banking for 10 years, and the one thing I can tell you is, it all depends on the bank. Some are much more willing to work with you than others are. Credit unions usually are more willing to work with their clients, especially you have an established relationship with them.
