Common types of loans

While it is right that coming to MoneyLender can be the best way to get the loan, it is very important to ensure that you apply for the right loan type. In order to choose the best one that best fits your financial and homeownership needs, you will need to figure out which one is best for you. Once you call a lender or coming to the physical office of the lender, make sure that you already know what loan type fits your financial needs. Yes, one of them will be the loan you will choose to apply for when you need the amount of money to borrow.

1. Conventional loans

These are the mortgage loans from the mortgage lending institutions. For your additional information, these kinds of loans can be either conforming or non-conforming.

2. Secured loans

When you apply for secured loan, there must be the asset used to secure or to back up your loan. The interest rate and loan amount can vary depending on the property value you leverage. Houses, vehicles, and savings accounts are common properties used to secure your loans.

3. Unsecured loans

Unlike secured loans, unsecured loans are not secured by collateral, so the interest and the size of the loan is usually determined by your credit history and income. Getting unsecured loan approval can be quite hard since there is no collateral you use to secure your loan.

4. Conforming loans

Well, the amount of loan can vary depending on the location of your home. If you have a home in a high-income area, you have the chance for a larger loan.

5. Non-conforming loans

Do you require larger loan than a conforming one? You will have the reason to look at non-conforming loans.

6. Open-ended loans

This type of loan comes with a fixed-limit line of credit. Perhaps some of you don’t know that credit cards are one of many types of open-ended loan.

7. Close-ended loans

Student loans, mortgage, and car loans can be classified as close-ended loans because they are not able to borrow from again. On the other words, if you want more credit, you must apply for a new loan.