what is the difference between a homeowner loan and debt consolidation loan?
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« What is the best, safest debt consolidation/negotiation program out there? | Home | Mortgage and Debt Acceleration – Paxeon, LLC »
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A homeowner loan is usually long-term and secured on your house. A debt consolidation loan is usually unsecured and over a period of, say, three to five years.
Homeowner loans can be used for debt consolidation purposes; the interest rate and monthly repayments may be lower. However, it’s never a good idea to exchange short-term debt for long-term debt as the ultimate cost will be higher.
debt cons. gets all ur debts together you then owe it to the cons. company and pay them back smaller amounts for longer
homeowner loan is a loan secured against your home, you make monthly payments and if you sell your house before the end of the loan you have to pay out the rest immediately. It also means if you miss payments you could lose your house as the loan is secured on it
one is for the home. and one is for loan consolidation.
A homeowner loan is a loan secured against a property, although I do not think it is technical term like secured loan e.g. if the loan is not repaid as per the repayment schedule, then the property may be repossessed.
A debt consolidation loan is normally a secured loan, .g. if the loan is not repaid as per the repayment schedule, then the property may be repossessed. Although some providers may offer unsecured debt consolidation. I have not actually seen this.
The loan amount will normally be sent to the borrowers minus the settlement of existing debt.
In many cases the borrowers will not receive any cash.
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