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POVERTY & HOUSING
The mortgage loan is the type of loan where your house is the collateral. The borrowers can take a huge amount of money from mortgage lenders to buy their own home. They will then return this money in the form of monthly installments with interest. The lender will be allowed to take your home through the legal process if you couldn’t pay back the loan.
For decades, there was only a single type of mortgage loan that borrowers could take to buy the home. This loan came with a fixed interest rate, and it was supposed to be repaid within the 30 years. In the 1980s, a new type of mortgage loan was introduced that came with lower initial interest rates. These mortgage loans worked as a remarkable solution for those buyers that didn’t have enough cash to buy a home.
Even more recent is a bridging loan. A bridging loan is a short term loan, usually for around 1 to 6 months. It is usually taken when you are waiting for a larger loan such as mortgage and you are in the process of buying and selling a house. Most licensed moneylenders offer bridging loans. You may want to find out more on Filife (Moneylender Directory). The website provides guide on how to get the best loan savings.
The individual investors or non-banking companies operate as private lenders offering short term personal loans. These loans are often targeted towards home buyers, car buyers and small business owners. These money lenders are the best option for businesses that can’t qualify for bank loans.
But you must find out if it’s good to borrow money from these money lenders or not. Here are some advantages and disadvantages of getting loans from private lenders.
• Fast Approval
• No Credit History Check
• Few requirements and restrictions
Borrowing money from private lenders comes with its own disadvantages such as:
• Risk of Losing Collateral
• Short Repayment Period
• High Interest Rates
• Risk of Getting Scammed
Do you still think that borrowing money from private lenders is a better option for you? We believe that private loans can be the right solution for people that need instant cash to overcome an emergency. However, you must make sure that you’re borrowing money from a reliable licensed money lender.