This is default featured slide 1 title
This is default featured slide 2 title
This is default featured slide 3 title
This is default featured slide 5 title
 

Homeowners Loans

Sometimes people mix up loans for homeowners with home loans or home mortgage loans. It is important to point out that these concepts are not the same and that the fact that the applicant is a homeowner does not necessarily imply that the loan requested is secured. On the contrary, homeowners can apply for secured or unsecured loans and still get better terms due to being homeowners.

Which Homeowner Loans DO Require A Mortgage

Homeowners can get any kind of loans and being owners provides them with benefits both at the time of approval and on the actual loan terms. However, the property does not need to be used as collateral for the loan. Only home loans and home equity loans require the property to be used as collateral. Home loans secure the money lent to purchase the property with the actual property while home equity loans secure a new loan (when there is already a mortgage loan present) with the remaining equity available on the property.

Both these loan types require a mortgage which guarantees the repayment of the loan and provides the lender with a more secure transaction. Furthermore, in case of default the property can be repossessed by the lender and sold in order to recover the amount lent.

When Is It Advisable To Request Secured Loans

This is an interesting question and the answer is not an easy one. Truth is that it will all depend on your needs and whether you have enough equity on your home or not. If you are seeking to purchase a house there is no doubt as to the whether you should request a mortgage loan or not. You do not have other possibility unless you have saved a lot of money. But if you need money for other purposes whether to choose a secured or unsecured loan is really up to you.

For smaller amounts it makes no sense going through the verification processes that are needed for a secured loan. Yet, for higher loan amounts, a second mortgage loan can provide what you need and you will have to pay less money towards interests with the resulting savings that this implies.

Mortgage And Mortgage Loan

The mortgage is a guarantee, it is a security that protects a loan but is not the actual loan. The mortgage is a lien on your property that attaches the asset to the debt that it guarantees. The debt then, follows the property which means that whoever the owner is, the property will still guarantee the loan. This does not exclude you as a debtor as debts are personal obligations. It is important that you understand this fact as it should have a major importance in your decisions.