One of the most popular searches on the Internet is "I don't have money, what should I do?" . On these occasions when we need an injection of money, you can resort to a home equity loan or companies that are money lenders.

What is the mortgage guarantee?

In a loan, a mortgage guarantee is the property that works as collateral , in the event that the commitment to pay the current debt is breached. It is important not to be confused with a mortgage itself, since in the case of loans with this type of guarantee, the money financed does not have to be directed to the acquisition of a property.

What are Home Equity Loans?

These types of loans are not intended to acquire a real estate, but they will have another series of objectives. The guarantee provided by the person requesting the money is the payment of a home that they own or that of someone who gives authorization.

It is a way to get money somewhat faster than the conventional one, since it includes more agile and flexible administrative procedures and in which the guarantee of the loan in a home that you own. That is, they are loans with a home or property guarantee .

Terminology to know before applying for a home equity loan

Interest rate

It is the price that the financial institution charges us for lending us the money we need. The conditions of a private loan are usually more similar to those of a personal loan because a fixed interest is applied and the fee to be paid will be constant during the term of the loan, without surprises or unforeseen events.

Collateral property

On this occasion, it refers to the property that is going to be provided as a guarantee or guarantee in the requested operation.

What Factors Influence Home Equity Loans?

Real estate appraisals

There are different mortgage and financial loans that give loans, but the first step for an operation of these characteristics is to carry out real estate appraisals on the property that will act as collateral.

In this way, finance companies that give loans to cancel debts or to have an injection of money in a company will have a reference of the current price of the property in the market.

Simple note

The money lenders companies will request said document in the Property Registry to have all the necessary information about the status of the loads of the property on which you want to make a mortgage loan.

Why apply for a home equity loan?

Of all the objectives of people who apply for a home equity loan, the most common are the refinancing of a pre-existing debt, the cancellation of a mortgage loan or to obtain an extra injection of liquidity for a project or company. This type of loan, in addition, can face very high amounts, depending on the needs of the person requesting it.

Why is it interesting to apply for a home equity loan?

This type of home equity loan can be requested even if we incur in some complicated situation.

What are the benefits it offers?

  • The home equity loan allows us to access a greater amount of money than a conventional loan.
  • Very competitive interest can be achieved by requesting large amounts of money.
  • The concession and the interest rate is not linked to the contracting of any type of product associated with the loan.
  • It is not necessary to change banks or carry out additional administrative procedures.
  • Both terms and installments are more flexible than a conventional loan.
  • They are a perfect option for business projects that are starting and do not have a credit history.

What type of property can we use as collateral?

Any type of real property can be used, as long as they are duly registered and do not present any type of charges or any other type of legal problem.

If we need the loan, but we do not have our own property, the flexibility of this type of loan allows us to present a third-party mortgage guarantee, with the proper permits and authorizations, and all the necessary legal requirements.

In summary, a home equity loan may be the best option to have liquidity at a time when it is necessary or if we want to make an investment without sufficient credit history. At Fasty Project Loans , we will receive personal advice, tailored to our needs, with its team of professional consultants.

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Carlos Fernandez

Director of operations
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