Secured Homeowner Loans-enjoy the Benefits

By: Daren Jone
Introduction

Many a times it happens that you need money but are not able to procure it from the market. Your bad credit history may be one of the main reasons. If you have been ever adjudged bankrupt, it might be the other reason. Lenders do not like to take risks unless they feel that their money is relatively safe. There are sub-prime lenders who specially deal with people having low credit score but these lenders ask for high interest rates. Now, get ready to use your home for having finance. Believe it or not, secured homeowner loans are offering you the facility where you can get money by placing your home as security.

It depends upon the value of your home. Actually in market it is calculated by a factor called equity. Equity is a market value that a home gets after deducting any unpaid loan, for which home has been pledged. In these situations you can get 80% equity loan on your home. There are lenders who can provide you 125% equity loan. The loan amount depends upon the value of your home. You can borrow an amount that ranges from ? 5000 - ? 250000.

Repayment terms

In case of secured homeowner loans, the repayment terms are comparatively easier. Many lenders provide you an option to choose between fixed rate interest, variable rate interest and 'Interest only' method of repayment. So, you can decide it according to your individual circumstances and preference. Sometimes lenders attach conditions like early repayment penalty that raises your cost of borrowing if you decide to repay your loan earlier than agreed. These fine prints in the loan agreement should be carefully read before you sign the agreement.

Places to get these loans

There are many lenders available online and offline for these money needs. However, for fast processing, online method of applying for these loans is considered best. Just fill in the application form available online. In this form you need to fill all your details like name, address, PAN card number, etc. to the best of your knowledge.

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