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There are many advantages to owning a home, especially if you have to borrow money. Homeowners can use the equity in their homes to access more borrowing options: mortgage refinancing, secured lines of credit, secured personal loans, etc.
Our partners at Fairstone Financial have given us information on secured personal loans that you will want to see if you are a homeowner.
A secured personal loan can help you get a lower interest rate than an unsecured personal loan. Since the loan has an asset (your home), you are more likely to pay off your loan and stay on schedule. Your lender will therefore be more likely to offer you a lower interest rate, which will save you money over the life of your loan.
You could also get more money by securing your loan. With Fairstone Financial, you may be eligible for a secured personal loan of up to $ 30,000. A larger amount can be useful if you are borrowing money to reinvest it in your home (be it emergency repairs or planned renovations) since renovations may require significant up-front expenses.
Finally, a secured loan allows you to take advantage of a longer repayment term. With Fairstone Financial, you can take up to 10 years to pay off your secured personal loan. A longer emergency same day loans repayment term gives you more flexibility and more affordable loan payments. These are easier to budget and manage, and will help you meet deadlines (and restore your credit).
Here are some reasons why a homeowner might opt for an unsecured loan instead of a secured loan:
- The process for applying for a secured loan is a little longer : your lender will have to take the necessary steps to determine the value of your home. If you need the money the same day you apply, an unsecured loan might be a better option. However, if you can wait before getting your loan, we recommend that you opt for a secured loan in order to take advantage of the best possible interest rate.
- You can pay off your loan before maturity, but you will have to pay a fee : some people like to have the option of being able to repay their loan before its maturity. At Fairstone Financial, you can pay off your secured loan before maturity, but you will have to pay a fee (the amount of the fee depends on the amount of the loan). With an unsecured loan from Fairstone Financial, you can pay off your loan before maturity without paying any fees.
A secured personal loan is a loan repayable by installments, which can be repaid over a given period and by means of fixed and regular (or installment) installments. Repayable loans lead to manageable loan payments since the amount is the same every month. In addition, your interest rate and the duration of the loan are fixed for the duration of the loan, which means that you will never have to wonder if the amount of your payments will increase.
For loans repayable by installments, part of the loan payments are used to pay interest and another part is used to repay principal. As you pay off your loan, a little more money goes towards paying down your debt than interest charges.