Mortgages > A Look at Common Types of Loans

A Look at Common Types of Loans

by: John Mussi

People sometimes wonder about common types of loans, especially with all of the different types of loans available.

There are many common types of loans that may fall into the same categories, as well as some common types of loans that are only different in one or two small ways.

Below are the descriptions for several common types of loans, including some of the factors that may restrict who is eligible for the loan and how much interest different individuals might have to pay for the loan.

Of course, this doesn't cover all of the loans that are offered? only the loans that you are most likely to encounter.

Secured and Unsecured Loans

Most if not all common types of loans fall into one of two categories? secured loans and unsecured loans.

Secured loans are those loans that use some object of value, which is referred to as collateral, as a guarantee of repayment and a method of offering lower interest rates.

Unsecured loans, on the other hand, require no collateral but almost always have a higher interest rate than secured loans.

Both of these types of loans may be affected by your credit rating, and secured loans may be affected by the value and type of your collateral.

Student Loans

Student loans are one of the common types of loans that provide money for a person to continue their education. These loans are often supported by the government, allowing them to be unsecured loans while maintaining lower interest rates. Many student loans have a deferred repayment option, allowing the student to put off repaying the loans until after they've finished school.

Auto Financing

Another of the more common types of loans is auto financing, which is a secured loan that is used to purchase a car, truck, or other vehicle. The vehicle that is purchased serves as the collateral for the loan, allowing a person to purchase the vehicle without having to put up additional collateral to secure the loan. Since most vehicles are higher value items, auto financing is often available to individuals of a variety of credit ratings.

Mortgage Loans

Mortgage loans are loans that are used to purchase or refinance a house or real estate, and are one of the most common types of loans. Much like auto financing, mortgage loans require no additional collateral since the purchased property serves as the collateral to secure the loan.

Mortgage loans tend to vary in interest rates and repayment terms, with common repayment options sometimes lasting as long as 30 years for larger mortgages. These loans can be gotten from a variety of lenders, including standard banks, finance companies, and online lenders.

Homeowner Loans

Very similar to mortgages, homeowner loans are loans that are taken using a house or other piece of real estate as collateral.

The major difference between homeowner loans and mortgage loans is that homeowner loans are taken out on property that the borrower already owns, and uses equity (which is the portion of the property's value that's already been paid for) as a major determining factor in interest rates and other loan terms.

Most individuals who own a home or real estate can qualify for homeowner loans (with sufficient equity), regardless of their credit rating.

Like mortgage loans, homeowner loans can be obtained from traditional banks, finance companies, online lending services, and other lenders? a growing trend in recent years, however, is for homeowner loans to be gotten via online services because of the increased convenience and anonymity of online lenders.

You may freely reprint this article provided the following author's biography (including the live URL link) remains intact:

About The Author

John Mussi is the founder of Direct Online Loans who help homeowners find the best available loans via the www.directonlineloans.co.uk website.

Reverse Mortgages, Getting a Good Deal In 3 Easy Steps!

Reverse Mortgages, Getting a Good Deal In 3 Easy Steps!

by: Vincent Dail

Reverse Mortgages, Most Common Features:

A reverse mortgage is a special type of loan that seniors can sometimes get to convert the equity in their homes to cash.

Many reverse mortgages offer special appeal to older adults because the loan advances, which are not taxable, generally do not affect Social Security or Medicare benefits.

Originally designed for retirees interested in keeping their homes but whose incomes aren't sufficient to support them, reverse mortgages have typically been used to help people on low fixed incomes make ends meet, make needed home repairs or pay for large medical bills that otherwise would be unaffordable.

Depending on the plan, reverse mortgages generally allow homeowners to retain title to their homes until they permanently move, sell their home, die, or reach the end of a pre-selected loan term.

Generally, a move...

Reverse Mortgages, Getting a Good Deal In 3 Easy Steps!

Mortgages > Reverse Mortgages, Getting a Good Deal In 3 Easy Steps!

Sub-Prime Mortgage Loans - Five Ways To Lower Your Rates On A Sub-Prime Mortgage

Sub-Prime Mortgage Loans - Five Ways To Lower Your Rates On A Sub-Prime Mortgage

by: Carrie Reeder

Sub-prime mortgages don?t mean you have to pay excessively high interest rates to buy a home. By taking time to do some research and pick the right terms, you can save thousands on your mortgage. The following five tips will help you get low rates with the right subprime lender.

Compare Lenders

The number one way to lower your interest rates on your sub-prime mortgage is to compare lenders before you apply. It sounds so simple, but too many homebuyers skip this step, costing them thousands.

Plan on taking at least a day to explore your options. The easiest way to look at financing packages is to request quotes online. While you are requesting quotes, take a look at conventional lenders as well. They often offer good rates and terms for those with adverse credit histories.

Pick An ARM

Adjustable rate mortgages (ARM) offer...

Sub-Prime Mortgage Loans - Five Ways To Lower Your Rates On A Sub-Prime Mortgage

Mortgages > Sub-Prime Mortgage Loans - Five Ways To Lower Your Rates On A Sub-Prime Mortgage

Mortgaging Your First Home

Mortgaging Your First Home

by: Jim Muscali

Securing a mortgage for the first time can be a frightening

time in your life. You want to make sure you understand

what is going on so the mortgage lender cant take

advantage of your lack of knowledge.

In spite of numerous laws and regulations it is still

better to have a very least a basic understanding of the

ideas and systems of the mortgage industry.

There are many different deals, incentives and programs for

the first time mortgage buyer. Its important to look at

each of these in detail to find out if they are worthwhile,

and if so, if they are ideal for you and your circumstances

when it comes time to mortgaging your first home.

The old saying if it seems too good to be true it probably

is should be kept in mind at all times.

There are whole range of starter mortgage plans dependent

on your situation now and what you anticipate will...

Mortgaging Your First Home

Mortgages > Mortgaging Your First Home

UK Consumers Start Clawing Their Way Out Of The Financial Debt Pit

UK Consumers Start Clawing Their Way Out Of The Financial Debt Pit

by: Michael Hanna

Another year ended, and another round of UK debt statistics.
CreditAction has just announced the latest summing up of the personal debt situation in the UK.

Their figures show that the end of 2005 has seen the total level of personal debt rise to an astounding ?1,158bn, an increase of ?100bn compared with the same time last year, and this debt is increasing at a rate of ?1m every 4 minutes.

These levels of debt affect everyone in the country, and have become a way of life.
The average household debt is ?46,863 including mortgages or ?7,786 including overdrafts, finance deals, credit cards and unsecured loans, but excluding mortgages.

To break this down further; CreditAction report that the average UK adult owes ?4,125 excluding secured loans, or ?24,833 including mortgage loans.

The Financial Services...

UK Consumers Start Clawing Their Way Out Of The Financial Debt Pit

Mortgages > UK Consumers Start Clawing Their Way Out Of The Financial Debt Pit

Mortgages keyboard

Mortgages A Look at Common Types of Loans perfume

The Ins And Outs Of No Load Life Insurance

by: Jon Butt

What is no load life insurance? No load insurance is fairly uncommon, but many consider it better than the average whole life insurance package. Life insurance no-load simply means that it is not commissioned-based.

The first year payments are much less compared to traditional life insurance packages. No load life insurance also has other notable features like zero cash surrender charges and earlier...

Mortgages The Ins And Outs Of No Load Life Insurance health insurance

Mortgages > The Ins And Outs Of No Load Life Insurance

seeds Mortgages A Look at Common Types of Loans

How To Find Good Counseling

by: Dave Lloyd

Counseling is a profession that aims to help people. It is one that the practitioner enters into knowing that they get the most out of making the lives of those they work with better. And in order to find the type of counseling that works best for you, it is critical that you understand this - the counseling professional you choose is there to serve you, first and foremost.

So as you evaluate counseling, specifically...

Mortgages health insurance How To Find Good Counseling

Mortgages > How To Find Good Counseling

car

Apply Eyeliner Like A Professional

by: Julia Brown

Many people think they already know how to apply eyeliner, and by all rights, they do a good job. In actuality, there is a big difference between the way you might apply eyeliner and the way a professional make-up artist does. Use these easy-to-follow steps and you can apply eyeliner like a professional make-up artist:

1. Select your eyeliner

An eyeliner must be applied near the base of your eyelashes....

Mortgages cosmetic surgery

Mortgages > Apply Eyeliner Like A Professional