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Second Mortgage or another line of credit?

I just found out that because I've exceeded my line of credit 2 times in 6 months, Bank of America wants to jack my APR up to 32% intrest. I've been with them for 4-5 years now and they are unwilling to work with me even though I've never had a late payment or exceeded the credit limit before.
The balance is substantial. I'm afraid that no one will extend me a line of credit large enough to cover my balance. Should I look into taking out a second mortgage on the house I've been in for 1.5 years? What are my other options? What's the downside to a second mortgage?
Thanks!

A lot depends on the amount of equity you currently have in the property. It may be that your home's value has increased sufficiently to support a new line of credit with another lender. An appraisal would be required to determine that, but an appraisal would also be required to obtain a second mortgage.

A line of credit is usually originated as an adjustable rate loan based upon the current prime rate plus perhaps an add on for loan to value or credit score. Some offer the ability to covert some or all of that line of credit into a fixed rate second mortgage at specific time of opportunity during the loan term.

A second mortgage is a fixed rate loan, usually a 15 year term. The rate is usually higher than that of a line of credit but the rate will not fluctuate as the prime rate adjusts.

If your current line of credit is an unsecured line of credit, your current bank might consider converting it to a line of credit secured by a 2nd lien against your home.

If they won't, call me, I'll help you figure out which way suits your needs best at no charge. Source(s): Nancy LaBonte
First Horizon Home Loans
800 971-4638
Nlabonte@firsthorizon.com
www.firsthorizonusa.com/nancyl...

20 years as a mortgage lender

You need to change your lifestyle and get out of debt.

go to www.daveramsey.com and read his book. It tellls you how to get out of debt and stay out.

Good Luck
How about taking on another (second) job? You are digging yourself quite a hole!
The second mortgage will depend on how much equity you have in the house. If you didn't put a lot of down payment (less then 10%) and considering that you have been there less then two years then maybe even they will not be able to extend you second mortgage because you don't have enough equity for that. I agree with what the others said-find a second, even third job, get yourself out of this debt as soon as you can and start managing your life a little better, so you will not need to live on loans. Good luck.
A second mortgage can indeed be the answer. There are many factors that might make it not the best idea though as well. The interest on the second mortgage is a tax deduction. Your credit card interest is not. If it cleans your slate witht the creditor it may be a very good idea. I would bet that that B of A would extend your line at the lower rate if you paid it off but did not use for 6-9 months. they will want you back. If you have any questions let me know. Your original mortgage may be on an aRM or interets only and a complete refi may be an even better option. Again many factors.
Mortgage Advisor serving Minnesota, Wisconsin, FLorida, and Colorado.