New Report Finds Consumers May Increase Credit Scores from Recent Home Equity Loan

Bridge mortgages released a recent report that indicates many consumers may be benefiting from increased credit scores resulting from their recent home equity loan transaction. The study also showed that it is possible for consumers to get sub-prime home equity loans for borrowers with bad credit, in order to qualify for the lowest home equity rates borrowers need good or, better yet, high FICO scores. myFICO.com, a subsidiary of Fair Isaac & Company, indicates that the higher your FICO score, the lower your payments. On their home page (myfico.com), myFICO.com has rates for different credit score ranges side-by-side for easy comparison.

The report conducted by a group of experienced industry insiders, indicated that home equity loans most particularly known for needing a great FICO score are the 125% second mortgage loans. With these loans, your FICO scores must range from 680 - 800. Chas Goebel, an account executive with Bridge, noted that the home equity loans come in all shapes and sizes. There are however, other fairly stringent requirements. For example, you:

• must have good residual income.
• must have a debt ratio below 50% after 2nd mortgage.
• must have a good employment history.
• must have no late payments reported on your credit report for the last 2 years.

With 125% loans, no equity is required because you are borrowing above the value of your home. However, there is an increased risk for the lender, so the qualification requirements are generally stricter than for other home equity loans (second mortgages)s.

125% loans are popular debt consolidation loans because you can get more money for the bill consolidation of high-interest credit cards and personal loans. Debt consolidation financing is a great way to stop compounding credit card interest rates from destroying your finances.

Your home mortgage lender can go over the benefits of secure loans for debt consolidation with you. It's easy to find a second mortgage lender to help you launch your secured debt consolidation strategy to pay off credit card debt, lower payments and save money. You'll be paying lowered interest rates, and there are some tax deductibility benefits, as well.

Lowering monthly payments alone should ease your concerns by quite a bit. But, there's also the added benefit of increasing your credit scores even more. myFICO.com says that paying down credit card debt by 34% could raise your scores by up to 20 points. Paying them off entirely will raise your scores even more. The amount of debt you owe is 30% of the weighted factors in calculating your scores, so paying off debts is one of the quickest ways to raise your scores and put you in a position to refinance your second mortgage for even better rates later on.

As reported in the report, Bridge Mortgage can only offers fixed rate home equity loans to 125%. Borrowers seeking equity loans to 100% can choose either a variable rate home equity line or a fixed rate home equity loan. Bridge mortgage does specialize in non-prime home equity loans for homeowners who may be hindered by their bad credit scores.

Bridge Mortgages suggests that consumers shop for loans online, but when that when they find a good lender to stop shopping and start working with the lender or broker that you trust the most. Bridge reminds consumers to consider all their options before signing documents for a new second mortgage.

To get more information about Bridge's findings the report latest guidelines for http://www.bridgemortgages.com/home-equity-loan.html

About
Bridge Mortgages is a home equity lender who has their offices located in California and New York. Bridge provides home financing for all types of borrowers, even bad credit. Their home equity and refinancing programs stand out from most mortgage lenders and brokers. For more information, please visit, http://www.bridgemortgages.com/ online.