Home > Loan Articles > Homeowner Loans A.K.A. Secured Loans Make Borrowing Easy.

Homeowner Loans A.K.A. Secured Loans Make Borrowing Easy.

Todays Date: December 19, 2018

There are various kinds of loans available one of which is an unsecured loan. As this loan is as stated unsecured everyone is theoretically able to apply for this loan. Theoretically that is as obviously loans are subject to status, income and so on.

As unsecured loans are not backed up by any form of security whatsoever the loan lender can easily lose the money if the person taking out the loan refuses to pay back the loan.

This is why unsecured loans and especially those available to tenants have usually fairly high interest rates.

With unsecured loans the lender often requires proof of what the loan is going to be used for.

It is not just the matter of the borrower stating that the loan is to be used to buy a new kitchen and being handed the loan cheque, as the lender will generally ask for sight of two or three estimates for the kitchen.

For those living with parents, etc. or in rented property the only loan for which they are eligible is the unsecured loan.

However homeowners are in a different position as they can also apply for secured loans often called homeowner loans or even secured homeowner loans.

They are called homeowner loans as they are only available to homeowners and secured loans as they are secured on the equity of a homeowners property.

As the loan is secured on the homeowners property the interest rates for these secured loans is always lower than that of the unsecured variety of loan.

Also unlike applying for an unsecured loan proof of the usage for the loan must be provided, secured loan lenders do not require proof of the purpose of the loan, and are happy for homeowner loans to be used for any legitimate purpose.

For homeowners by far the simplest way is to apply for a secured loan.

Want to find out more about homeowner loans , then visit Champion Finance’s site on how to choose the best homeowner loan for your needs.

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