Benefits of Home Owner loan ? Find out what it holds for youPosted by Nick Niesen on October 29th, 2010 ?Mid pleasures and palaces though we may roam, be it ever so humble, there's no place like home?, a perfect quotation for a home given by John Howard Payne. Owning a home is a matter of privilege. A home gives a sense of security and gives the owner the control of his living place. A homeowner enjoys the freedom to do whatever changes he wants to do at his home and nobody can stop him. Being a homeowner in UK, one can enjoy an additional perquisite; he can apply for a home owner loan, which is the best way to encash equity in the home. Home Owner loan allow home owners to borrow money against the equity in their home. The word ?equity? is defined as the value of an owner?s real property after deducting mortgages and liens. A homeowner loan frees up the equity in your home and allows you to use it for whatever you like. Home owner loan is different from a secured loan. A secured loan is a kind of personal loan secured by any property or automobile, it aims at satisfying the personal needs. While, a home owner loan is designed specifically for home owners and a home works as a security against the loan. A home owner loan has the benefit of providing a borrower with a low cost, low rate alternative to a secured loan. Different people have different reasons to apply for a home owner loans. Homeowner loans are also worth considering if you need extra money to buy a new car, making improvements at home or to finance that holiday of a lifetime. This loan can also be used for debt consolidation which will reduce your monthly spending to a more sustainable level. Home owner loans facilitate a borrower to borrow from £5,000 to £ 75,000. The loan amount can be extended up to 100,000 depending on the lender you choose to borrow from and the value of the equity in your home. Repayment term of a home owner loan varies from 5 to 25 years. Benefits of a home owner loan are:- .Lower monthly payments than unsecured loans .Allows a borrower to borrow more money over a longer period of time .Some lenders can offer flexible repayment terms allowing you a payment holiday or the facility to pay off the loan early.
As a borrower you need to keep yourself on the safer side as you would be required to pay monthly payments and the whole loan amount at the end of the loan term. There exists a risk of repossession of your home, if you fail to repay any of the monthly installments or the loan amount. So, make a little effort. Search for all the home owner loan providers, collect loan quotes from them and compare them to find the loan that matches your financial status to the best so that you can pay the loan and the monthly payments in full and on time. A home gives the owner the freedom to do whatever he or she desires. Home owner loans facilitate home owner with an opportunity to access the extra cash that is stored in his home in the form of equity which you can use to finance your personal needs. Like it? Share it!More by this author |