Decoding Financial Gobbledygook

Decoding Financial Gobbledygook



Decoding Financial Gobbledygook
Anytime I​ need information with respect to​ loans and mortgages, I​ go online .​
They have made life so much less difficult for all those lesser mortals who find it​ so tough to​ understand (so-called) simple notions like redemption penalties, collateral, secured homeowner loans, unsecured loans, and so on .​
I​ no longer have to​ look to​ friends in​ the finance field to​ advise me on what loans to​ take and what not to .​
The world being driven by the web these days, everybody has to​ learn to​ think for themselves .​
It was while trying to​ sift through the financial jargon that passes for English on the web that I​ found the answers to​ many of​ the questions that had been plaguing me .​
Of course, I​ had to​ look through almost a​ dozen different websites and spend a​ couple of​ hours before finally reaching a​ complete understanding of​ the words that loan companies try to​ win over our heart and our business with.
For starters, I​ have been successful in​ finding the difference between secured homeowner loans and unsecured loans .​
Now, secured loans of​ any kind are usually secured against some asset .​
In most cases, this asset is​ a​ home .​
On the other hand, unsecured loans need no such security, which is​ one reason why the time taken to​ get hold of​ an​ unsecured loan is​ far lesser .​
After all, you could be giving the name of​ any property anywhere in​ the world and stating that it​ is​ your own .​
Obviously, that is​ not going to​ work .​
So, you have to​ provide a​ never-ending list of​ papers to​ prove to​ the loan providers, that the property is​ your own .​
Quite a​ few of​ those that have stakes in​ real estate resort to​ secured homeowner loans because, in​ spite of​ the paperwork required, such loans are quite simple to​ get a​ hold of.
I also learnt what collateral meant (also a​ Tom Cruise movie) .​
Collateral basically is​ the term used to​ mean security .​
So the house that secures the loan for you, works as​ your collateral .​
Suppose you are unable to​ repay the loan on time, bid a​ fond farewell to​ your home of​ many years.
But for an​ unsecured loan, it​ becomes easier to​ get one if​ you have a​ good credit history .​
People who do not have a​ history of​ good credit are usually treated like prodigal sons .​
They are made to​ pay a​ considerably higher rate of​ interest, getting loans is​ that much more arduous, and in​ general, even getting a​ loan is​ a​ task and a​ half .​
But now that you have understood some of​ the notions, you will find it​ much easier to​ get that loan.




You Might Also Like:




No comments:

Powered by Blogger.