A secured loan, or a homeowner loan, is different from an unsecured loan, as the borrower needs to provide the lender with a form of security. An item such as a car or a property is used as security for the loan and the lender holds the rights to the article until the borrower repays the loan.
- It is an effective way for homeowners to obtain money at an affordable rate. You are able to consolidate all other debt, and only make one monthly payment.
- You can usually borrow a bigger amount of money through a secured loan than an unsecured loan.
- The repayment period may be longer than with an unsecured loan. You have flexible repayment options, and can choose to repay it over any period between 5 and 25 years.
- People with an adverse credit listing can still qualify, though their interest rate may be higher than the standard.
- You can decide how you want to use the money.
- You could possibly stay in debt for a long time. Opt for the shortest period over which you can repay the loan.
- You need some sort of asset to use as security for these loans. This might not be an option for those without a home or a vehicle.
- Make sure that you can afford your secured loan as failure to make your payments may put your home (or other asset) at risk.
- Contact one of our agents on our free number and they will be more than happy to discuss Harrington Brooks’ secured loan options.
