Cheap Secured Loans

There are many kinds of secured loans. A secured loan can be in a form of mortgage, secured car loan, title loan or pawnbroker loans. What sets secured loans apart from unsecured loans is the fact that something of value or an asset is used as collateral or as a security for the lender. The most often used form of collateral is the home whether you are getting a mortgage or re-financing. Since homes are very expensive, secured loans taken out on them often last between 15 to 35 years. There are also other collaterals that can be used for securing a loan. These include government securities, corporate bonds, titles, precious metals and cash.

There are many secured loans offered by so many financial institutions. Since a secured loan is seen as risking your home or other valuable assets, it is important to find the cheapest secured loan. It’s not an easy task to do this especially if you are doing it on your own and that is why Quick Secured Loans can help you find the cheapest secured loan rates with just a few steps.

How to Distinguish a Fixed Rate VS a Variable Rate

As the name implies, you can probably get an idea of the difference between a fixed rate and a variable one. Since we are talking about interest rates that you are going to have to pay, it is very important that you understand these terms comprehensively before you agree as to which one would suit you best.

Fixed Rate
This is a particular interest rate that is calculated against the amount you owe for a certain period of time. For example, if your term is 20 years and your fixed rate is 4.5%, that means you will have to pay 4.5% of interest for the whole 20 years. It gets more complicated to understand if you want to pay off your debt earlier because since fixed lenders would have already counted on the profits that they will make during the whole period of your time. Paying your debt early means you stop paying interest so that in turn means they lose some expected money from you.

Many secured loans are actually offered on a fixed interest rate basis. If you think about it, it could mean some security on your part as well because you don’t face the risk of having to pay very high interest rates if the market goes crazy with the base rate. You never really know when this is going to happen so having this kind of peace of mind over a matter like this, especially if you are risking something very important such as your home, is truly essential.

Variable Rate
The variable rate fluctuates every now and then. This means that there are times the rate is very low, other times, very high. The only advantage you can get from a variable rate is if and when the benchmark of the market is very low. On the other hand, you could be in very serious trouble if it goes very high. For secured loans, there are some kinds of protection you can take advantage of. For example, there is capping or collaring wherein your interest will have a range that is within the protected rates but of course, this would entail additional expense on your part. 

If you want to find cheap secured loans, look no further. Quick Secured Loans is here to assist you every step of the way. You can fill out our online form to get a free comparison or a free quote from your chosen creditor. Find out what you can take advantage of now!