When you need more than the amount most lenders will offer without
a guarantee of repayment, you can turn to companies that specialise in
making secured home loans.
Those loans, also called secured loans and homeowner loans, are secured
by your home or other real property. Because lenders know that they can
recover their money if you default on the loan, they are often willing
to lend you as much as 125% the value of your equity in your home in
secured home loans.
Of course, since you're literally putting your house on the line, it's very important to get the best possible terms on a secured loan.
Before you accept just any offer extended, take the time and trouble to
research secured home loans carefully, as well as exploring all your
other options first. Most financial experts agree that secured home
loans should be a last resort for those that can't get the loan they
need without drawing the equity out of their home. The reason for this
is, of course, that when you use secured home loans as a fund source,
you take the risk of losing your home if something should happen and
you're unable to make repayment on your loan.
You can compare secured home loans online through many different
sources. When you're choosing a firm to do business with, be sure to
check that they are certified to do business, and that they have no
black marks on their reputation. Narrow down your choices to a few with
good typical APRs, then ask for direct quotes on rates and terms for
their secured home loans before deciding to accept a loan from any one.
Rachael Gallant has worked for the UK financial services
market for a number of years specialising in secured loan applications
for UK home owners. She understands how time consuming it can be trying
to interpret the associated jargon which is why she writes clear, easy
to understand guides exclusively for "Secured Loans Centre".
