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