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| *Loan,banking and credit>>>secured loan |
What does the question "is the mortgage or home loan secured on your home" mean? |
this is a question on a form i am filling in and i dont understand the question It means, if you have a mortgage or second mortgage, line of credit, is the loan being secured by the value of your home. Similar to a car loan. The loan on the car is secured by the value of the car, that is if you fail to make payments on your car loan, the bank can reposes your car, sell your car and satisfy the loan. It is similar to a home loan. If you take out a first or second mortgage, they are secured by the value of your house and the property that it sits on. However in some cases banks make unsecured loans, which frees up equity in your house, thus allowing for additional lines of credit. However, they way this question is asked, they want to know if the loan your listing is secured (or held to value) by your home. Most home loans or mortgages are secured on your home. You should check with your bank just too be sure. It means: do you have any secured loans? In laymens terms: If you fail to pay us our money, and anyone else, and we have to repossess your house, how much are other lenders going to take before we get ours? I dont know if I have misread the question or it isnt worded properly but it could also mean: The house you are using as collatoral your own? So if you dont pay we can reposses it? Or if it is regarding a previous question regarding another loan you have, it could just be asking if it is secured against your home. Which seems the most likely. It means is your house collateral for the loan. Collateral means you will lose the item(your house) if you fail to pay the loan. Any home loan through a bank or credit union will be arranged this way. However sometimes family and friends will make loans to help people buy houses, but not have it officially recorded as a lien against the house. This means technically it is a personal loan and they have no rights to the house if the person does not pay. fixed interest rate Is your house being used for collateral. In other words you could lose it IF you don't make and keep up the repayments. If you can't pay the loan back then the bank will take your house, I.e. they have secured the loan to you with the re-assurance that they can sell the place if you can't pay them their money back. It means that your house is collateral for the mortgage or home loan, and that if you don't make the monthly payments on your house that the lender who gave you the loan has the right to foreclose on your house if you can't make the payments. |
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