At Ace Mortgage Loan Corporation, we are here to help in all your loan needs in Delray Beach. Whether you need a loan to purchase a home, car, or boat, there are financial institutions that are very helpful when it comes to lending. Loans work well for most situations because the borrower has immediate access to the money they need. Not to mention, the lender can make their money back plus more with interest rates. While these specifics are handled during the process, there are four types of loans that can be chosen between the borrower and lender.
- Secured Loan: an asset or collateral of some sort protects these loans from going unpaid. When you are borrowing money from a lender for a car or home, your ownership is withheld. The finance company will keep the title or deed until there is not any more money owed. These loans are used the most for larger amounts of money and offer lower rates than unsecured loans. Because there is a form of security with the secured loans, the repayment terms are not as strict.
- Unsecured Loan: lenders take a larger risk when it comes to unsecured loans. While there is no collateral that is kept on the lenders behalf, the amount of money being loaned is not as high. Unsecured loans are normally composed of credit card loans, student loans, and personal loans. The interest rates may be higher but it is easier to pay off these loans compared to a secured loan. When applying for an unsecured loan, there is criteria that must be met to determine one’s creditworthiness. Depending on this, your interest rates are determined.
- Conventional Loan: a loan that can be offered by any mortgage company, bank, broker, or credit union, without any insurance backing from the federal government. Because you don’t have to wait for the government to approve these loans, the process is faster. You might have access to a lower interest rate this way because your income, credit score, and other factors. These loans are the best for individuals with good credit and can afford cash down payments.
- Open- ended loan: continually borrowing money and repaying the balance is included here. Instead of paying off a predetermined amount, you are free to revolve the loan for however long you’d prefer. Like a credit card, you are approved for a certain amount, which is called your credit limit. As you pay off the amount, you can reuse it again whenever you need it.
Depending on the type of loan you need, Ace Mortgage Loan Corporation can help you qualify for loan services in Delray Beach. Call us today at (954) 777-4774 for more information about securing a loan for your home. We are always happy to help!