What is a Secured Loan?

Whether you are new to the market or have had a mortgage for several years, there are always going to be questions on the types of mortgages and loans available.  If you are in a situation that requires cash quickly you might be in the market for a secured loan, but what is a secured loan?

Secured loans are a product you obtain on a piece of property.  Furthermore, a secured loan is an agreement with a stipulation that if a default occurs you will lose the property you used for collateral.  There are all types of secured loans.  Car loans, mortgages, re-mortgages, equity loans, and even consolidation loans may be secured loans.

The most common type of loan is the home loans and second mortgages.  As a homeowner you are probably aware of the many reasons for changing the current type of loan that you have.  You may need cash quickly to pay off another type of debt or to pay for medical attention.  Perhaps your child is heading to college and you need the tuition money.  A secured loan is going to be a little different than a mortgage.  Most mortgages take a month to six weeks to close on the mortgage, even if you are just re-mortgaging the same property.  There are also extensive fees to take part in the process.

In the current market the arrangement fees are increasing.  The credit crunch has been such that many banks are finding every way possible to recoup their losses on the subprime market.  The good news is that you have other options.  With secured loans you can obtain the money within two to four weeks of applying for the loan.  There will also be a check at the closing if you intend to get equity out of your home.  Some of the home loans can take a week or two to get your equity, as the re-mortgage will pay off the first mortgage and then the money is sent to you.

With secured loans there is one other option on the market right now that might be very important to you.  The cashback loans have been around for a long time, but most of the banks do not offer this option.  This type of loan is seen as too risky for them.  With a lender such as iSecured Loans you can receive 2 percent cashback at closing on the new loan.

The loan works in that you can get 100 percent, 85 percent or 70 percent on a secured loan depending on your employment status, and on top of the loan you get 2 percent cash that is not repaid.  It is an incentive and the best product on the market in the secured loans arena. 

Whether you need money for a wedding, college debts, or just to keep yourself above the bad credit line, a secured loan will be able to work for you.  By choosing a secured loan, you will be able to obtain the loan in a quicker amount of time than any mortgage.

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