![]() ![]() When you’re buying a standard house using a traditional mortgage loan, then your initial payment can typically range from anywhere between 3% to 20% depending on your financial situation as well as the lender. Can I Use a Personal Loan for the Initial Deposit/Down Payment on My Mortgage? So, if you want to get a secured personal loan, then you will porbably have to offer up an initial cash deposit as your collateral. Secured loans typically have lower interest rates. If it’s an unsecured loan, then it will most likely have a much higher interest rate. This means that if you default on your debt, then the lender has the right to seize your house. However, personal loans can be either secured or unsecured. For a mortgage loan, the house itself is put up as collateral for the loan. One thing you must keep in mind in this case is that a personal loan is not necessarily a secured loan like a mortgage is. ![]() In cases such as these, borrowing money using a personal loan may be a prudent solution. In fact, you may even find that you’ll have trouble finding a lender who’s going to give you a mortgage loan to buy a tiny apartment or a mobile home. If you’re looking to buy a big or even a standard-sized family home, then a mortgage loan will most likely be your best bet. However, if you’re looking to buy a tiny house or apartment for yourself, or even a mobile home, then you may want to look into the possibility of a short-term loan rather than a mortgage loan. In most cases, it’s not a wise decision to take out a personal loan in order to buy a house. This is because personal or short-term loans typically have much shorter repayment terms/plans and they typically charge a much higher interest rate than mortgage loans. Ask a question, get an answer ASAP! Is it a Good Idea to take a Personal Loan to Buy a House?
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