Lyons Leadership

Now, there are many different options for you as the consumer when getting a loan - different interest rates, terms, and sometimes rewards.  For some of you, getting a loan is a no-sweat thing, whereas for others, it can be an ordeal.  I just want to take a look at a way that you can reduce your loan payments if you own a home.

For those of you that are home owners and have some equity in your house, do you realize that you are sitting on some unrealized potential?  Unlike a regular unsecured loan which has a repayment period of up to seven years, if you were to get a secured homeowner loan, you can extend those payments for up to twenty five or thirty years (basically up to the length of your mortgage).  By financing your purchases in this fashion, it increases your monthly mortgage payments by a little bit, but you can keep more of that money in your pocket.  Quite often you can also get a better rate on your loan because you do have your home as collateral in case you are unable to pay.

Speaking of that, I do want to mention a word of caution:  if you do get a secured home owner loan be forewarned that you could lose your house if you don’t make your payments.  So be sure to talk to a financial advisor and perhaps an accountant before you make the decision to put your home on the line (so to speak…).