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Home arrow Mortgages-Refinance arrow The Future Of Secured Loans / Homeowner loans.
The Future Of Secured Loans / Homeowner loans. Print E-mail
Written by LizMoir   
Sunday, 07 February 2010
A homeowner loan is as the name suggests a loan for which only homeowners are eligible.
by LizMoir


A homeowner loan is as the name suggests a loan for which only homeowners are eligible.

Homeowner loans are sometimes also called secured loans, and the reason for these two names is that only homeowners can apply and also that these homeowner loans are secured.

When we are talking about secured what these home loans are secured on is the equity in a property.

Equity is the diffence between any mortgage out standing on the home and the actual bricks and mortar value of the home.

If a property had a value of 260,000 and a mortgage balance of 160,000 the equity would become 100,000 which does not mean that there is a secured homeowner loan available of 100,000.

Although the recession is officially over the underwriting of secured loan lenders is still solidly in the time of the recent recession and the maximum loan to value for an employed homeowner loan applicant is still 80% and for self employed people it is 70% absolutely maximum.

There is a new secured loan lender entering the market at any time now although everything is very secretive at present who is to arrange secured loans at 90% LTV which will help secured loan brokers survive a little longer.

Since early 2007 the homeowner loan industry has struggled to exist at all with the majority of both homeowner loan lenders and brokers ceasing trading.

It is now a very far cry from three years ago when the secured loan industry thrived and large volumes of these loans were paid out every year from the many now mainly defunct secured loan lenders.

With the recession at an end it is to be hoped that the secured homeowner loan will returned to some what of its former glory.

The secured homeowner loan sector is a poor shadow of the homeowner loan of 2006 when the sector was vibrant unlike now,and it has been sad to see the fall of so many secured loan lenders and brokers.

Three years ago there was even a homeowner loan in which the homeowner loan could borrow up to 25% more than the house was worth

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