The Benefits of a Secured Homeowner Loan
February 2, 2010 by Stacy42
A secured homeowner loan is, as its name suggests, a loan secured against your home. Secured homeowner loans require no upfront survey, legal or other fees. The loan can be used for many purposes, including paying off outstanding loans or credit cards and reducing your monthly repayments. Also, the loan can be used for home improvements, a new car, a wedding, a holiday or to inject capital into your business.
There are a number of specialist lenders willing to advance finance secured by way of a second charge against the your home over a period of between 5 and 25 years. Generally speaking, the maximum combined loan-to-value (LTV) of the current mortgage, plus the proposed extra secured loan, should not exceed 90%. In fact, some lenders will restrict the maximum LTV to 80% if for business purposes.
As the finance lender would be second in the queue for security, this involves a slightly higher risk which means that a higher interest rate would be charged, the interest rate depending upon the applicant’s credit score. Although secured homeowner loans might be more costly in terms of the interest charged in some cases, the following advantages may apply.
- A secured loan may usually be raised much quicker than finance using a remortgage. Whereas it might typically take three weeks to arrange finance via a secured loan, it usually takes at least six weeks to remortgage.
- The applicant may be tied to a mortgage lender offering a low interest rate for say 3 or 5 years, which might involve early redemption charges if the mortgage is redeemed early. In using a secured loan, the mortgage can remain in place to avoid this charge.
- Whilst the applicant may have a 25 year mortgage, they may not wish to extend his business finance for such a long term, which would be the case if they remortgaged.
- Finance raised via remortgaging cannot be offset against the future profits of a business for tax purposes. However, a separate secured loan can be clearly identified as being for business use and offset against tax accordingly.
When thinking about applying for a secured homeowner loan, it is wide to consult with a professional loan broker who will search the market and source the best secured loan for you from a wide panel of lenders.
Chase sucks, I have them in second position too (first position is Litton). I purchased the house in FL in 2006 with an 80/20, the loans were sold 3-4 times prior to ending up with litton and chase. I am 7 months behind and getting nowhere (they claim to lose paperwork), im gonna hang out here for free until they kick me out, and then I will go bankrupt (I do qualify) and not pay any deficiency. Screw those bastards. Also, I am forcing them to provide my original documents, they cant! haha
basically there's a LOT of oil down there. The lender has said they'll lend up to $70 million based on the reserves. If we flip this it'll be at a discounted present cashflow value so it'll be in the mid-9 digits!!!!
We're going to meet the lender this week in Stamford, CT to talk about the terms of the loan. Our loan broker says the loan is a done deal – all we need to agree on the terms. lets see if thats true.
don't think plant fuels will help out. once plants are used as a replacement for expensive oil, their price will spike causing food to become more expensive!
Alot of sweepstakes scams include a sales presentation. They say that you have won an undetermined prized, and make you sit through a sales pitch before you collect it. Usually, the prize isn't worth your time, or has strings attatched. For instance, you may win a Florida vacation. The catch-you pay for the airfare, and it's in an off-season.
BUT….usually it never hurts to enter a free sweeps. Some offer real prizes. Just don't give out any personal info, like SS# or credit card #.