Interesting Facts About Homeowner Loans Otherwise Know As Secured Loans.
Nov 1, 2009 Mortgages
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Homeowner loans otherwise known as secured loans are of course only available to homeowners.
Tenants cannot apply for homeowner loans as these secured loans are secured, and what they are secured against is the equity in a property. Equity is the difference between the worth of a property, and the balance of the mortgage. If for example the mortgage balance is 150,000 and the property is worth 300,000 the equity in this case is 150,000.
Before the credit crunch secured homeowner loan lenders granted homeowner loans up to 90% LTV , 95% LTV and 100% LTV, and so based on the previous example loans of up to 100,000 were available but also depended on an applicant’s income and status.
Certain secured loan lenders including Paragon, EPF and First Plus even gave secured loans at 25% more than the property was worth. This was acceptable when house prices were rising, but when they started to fall these secured homeowner loan lenders were in serious trouble.
There are no longer such slack loan to values, and the maximum is 80% for employed prospective secured homeowner loan applicants, and reduced to 70% for self employed people.
The maximum secured loan values nowadays is between 50,000 to 100,000 depending on secured loan lenders.Before the recession loans of up to 250,000 were available if the secured loan applicant had tons of equity.
Homeowner loans can be used for almost any purpose such as to buy a car, motorhome, boat etc.In fact homeowner loans are a very good way to fund such a purchase as these loans enable you to buy a vehicle from a private individual or at an auction, and this can save you a lot of money. If you want to buy a car for example from a dealership and arrange a loan from the dealer to buy a car you will pay more for the vehicle than you would if you bought it in a private sale. Also if you buy from a dealership you will require a substantial deposit of up to 30%, and if you do not have a car to trade in 30% can be a fair amount of money to have to hand. A secured homeowner loan will fund the purchase without the need for a deposit.
You can use a homeowner loan as a debt consolidation loan which saves loads of money as it rolls all outstanding debts into one, and makes struggling with numerous debts a thing of the past.
If a homeowner has always had a dream of owning a second home at home or away, this dream can become a reality with a secured loan which can fund 100% of the second home purchase.
These are only a few facts about homeowner loans to hopefully wet your appetite for this excellent low interest secured loan product.
Learn more about secured loans. Stop by Champion Finance’s site where you can find out all about homeowner loans and what it can do for you.
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Tags: "mortgage, Debt Consolidation Loans, Debt Loans, Homeowner Loans, loan, Mortgages, Real Estate, Remortgage, Secured Loans
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