Homeowner Personal Loan ? The Advantages ... - Finance information

ownership

Even though we are talking about home ownership, it does not hurt to give a contradictory idea of ??what ownership implies as a legal and economic term. Ownership refers to possession of an asset, any asset. Legally speaking, there is a distinction between movable property and immovable property. The first category Constitutes personal assets and the second one, real assets (better known as real estate). Furthermore, there is another distinction between non-registered movable property (ie computers, house appliances) and registered movable property (ie Cars, Vans, Yachts).

Some personal assets (especially registered personal property) and real assets can be used as collateral to secure a loan. This entitles the lender to take legal action directly against the property and recover his money from the selling of the asset in a short term process legally. This greatly Increases the risk of lending money and Malthus, the interest rate charged for these loans is Considerably lower. Benefits of Home Ownership

However, owning any asset (especially real estate) contributes to getting lower interest rates not only when applying for secured personal loans, but when applying for unsecured personal loans too. Ownership is a guarantee for the gene rally calendar because it implies solvency (the ability to meet financial obligations on time.) In many ways. For starters, Maintaining a property is not cheap, and Malthus, it shows the lender that you?ve been able to administrate your finances properly. But it also implies that in case you can not afford the monthly payments and the lender has to resort to legal means to recover his money, there are more probabilities he will be able to get enough money from your assets to recover the amount owed and any legal fees he might incur not in.

Lower rates are the only benefit you can get from home ownership. The amount of money you can request is therefore important to factor. Homeowners, due to how the property contributes to his solvency, can get higher loan amounts either with secured personal loans or unsecured personal loans. It really depends on how many assets you have and the value of each one Whether you can get a higher loan amount with a secured loan or unsecured loan to. This is due to the fact that secured loans can offer as much money as the property?s value while the amount of money you can request on an unsecured loan is related to the whole value of all the debtor?s assets.

Furthermore , so homeowners will get longer repayment programs. Since the length of the loan is directly linked with the risk involved for the lender in the financial transaction and given that homeowners imply a Considerable lower risk, homeowner personal loans have extended repayment plans with more flexible terms. And as a consequence of lower rates and longer repayment programs, so homeowners get lower monthly payments that are easily afforded. id=?article-resource?> Kate Ross is a professional consultant with fifteen years in the financial field. She helps people in the process of securing

personal loans, mortgage, refinance or consolidation loans and Prevents consumers from falling into financial scams. If you need advice on Personal Loans you can visit her site and get more articles and smart tips on this and other financial issues .

http://EzineArticles.com/?expert=Kate_Ross

More Immovable Property Articles

small business saturday hank baskett beyonce dance for you beyonce dance for you nba lockout over nba lockout news nba lockout news