Guaranteed mortgage loans and better payment terms

Obtaining a loan is not as easy as before. When you find a loan, it is usually on terms that are simply not affordable. But for those who own their own homes, loans with good repayment terms are still within reach.

Secured home loans are simply loans against your home equity. In simple terms, secured home loans use your home as collateral for the loan.

If you do not make loan payments, the lender simply owns your home. By making loan payments, you will benefit from good credit.

It makes sense that if the lender takes comfort in the event that you fail to make payments, the lender considers the loan less risky. As a result, the lender is more willing to offer you competitive loan terms. Even if you lose your job and cannot make the payments, the lender will still be able to get some of the money back by selling your home.

The added security in a secured loan is why home loans often have APRs that are 1/3 of what you can get for an unsecured personal loan. The bottom line is that you end up paying a much smaller amount of money.

In addition to the lower interest rates, you may also be eligible for a much higher secured home loan than an unsecured personal loan. If you are an average person, the most valuable thing you will have is your home. Lenders know that not only is the loan secured by equity, but the home you provide as collateral is of great value to you personally.

You will do everything in your power to maintain ownership of the home. For the lender, this means that they will go to great lengths to make their payments on time.

The amount of money you can borrow is important when trying to pay for a college degree or a medical emergency. Many people go one step further and borrow enough to pay off all other debts. Your debt is then consolidated into a single secured home loan at a very reasonable interest rate and monthly payment.

As long as the payment is made every month, the debt collectors disappear and the monthly expenses become manageable.

There are a variety of other types of loans you can get, but few come with payment terms compared to secured home loans. Most of them are government-subsidized or guaranteed loans, for which you qualify only in specific circumstances. So if you need to get an affordable loan to get your finances in order, you’ll want to consider a secured home loan.