Smart Way To Apply for A Home Loan

SMART WAY TO Apply for A Home Loan

When confronted with poor credit,

people resort to home loans.

There are two kinds of home loans you may apply for: - home equity loans - home equity credit line (HELOC).

Home Equity Loans vs HELOC

Home Equity Loans â—?

Work just like regular loans where the borrower is given the entire sum of loan he/she applied for which she would later pay back in installments.

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These loans have a fixed rate of payment which applies for the entire payment period.

Home Equity Line of Credit â—?

Works like a credit card where a borrower is given a credit limit for a particular draw span

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A borrower can take the cash he or she wants at anytime within the draw span until the credit line is reached.

YOUR HOME LOAN ●

In both types of loan, the amount the borrower can get is equivalent to the value of the property.

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The home is used as a security for the debt.

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So, if the borrower does not pay the whole sum borrowed, the lender is entitled to obtain possession of the property.

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In other words, the borrower loses the house to the lender.

FOR MORE INFORMATION ABOUT HOME LOANS READ http://www.newhorizon.org/credit-info/how-to-borrow-a-home-loan-wisely/

LOOKING FOR HOME LOAN FOR BAD CREDIT? http://www.newhorizon.org/Info/homeloans.htm