2007-02-13 12:43:27 · 4 answers · asked by blahblahblah 5 in Business & Finance ➔ Renting & Real Estate
Wow what a variety of answers!
$60,000 is close to the $50,000 limit I think that a lot of lenders use as either an equity loan or a mortgage. If the loan value is less than $50,000 then a lender feels it isn't necessary to register it as a mortgage and then an equity loan is issued.
I think that is why you may be asking this question.
If it is an equity loan then the property would still be used as collateral and a charge would still be registered on title.
Interest rates for a secured loan would probably be at the posted rates while if you had a mortgage registered it would be at a discounted (.75% -1%) below the posted rate.
Check with a couple different lenders to see what they are offering because it is competitive.
Run your credit report yourself (which is a "soft hit") with the FICO or Beacon score so that you don't have all the mortgage lenders running a credit check and deteriorating your credit score.
Also, the amount you are putting down as well as your credit history and equity position will reflect your interest rate and the structure of the loan.
2007-02-13 15:00:47 · answer #1 · answered by glen s 3 · 0⤊ 0⤋
All 3 prior answers are incorrect.
Even unimproved or feral land is considered real property. If you are borrowing money for the purchase of real property, then it will be encumbered by a mortgage until it's paid off. As such, it is a secured transaction, not a personal or commercial loan. If you default on payment, the bank takes back the security, in this case the land.
Bank rates for secured transactions are much better than unsecured loans. Sure, you could take out a personal loan - at 12 or 15% depending on your credit rating - and use the proceeds to pay cash for the dirt.
It would make more sense to take out a real property loan at 5% tops.
2007-02-13 22:03:03 · answer #2 · answered by gw_bushisamoron 4 · 2⤊ 0⤋
If the property has a home on it, then it is a real estate loan. If it is just land, it can be considered agricultural loan or commercial loan, pending on the zoning and where it is located. Make sure to view the site below before taking any steps. Hope this helps.
2007-02-13 20:58:55 · answer #3 · answered by citronge69 4 · 0⤊ 1⤋
If you're going to live on it, then it could be a home loan; otherwise, it's probably a personal or commercial loan.
2007-02-13 20:50:45 · answer #4 · answered by Anonymous · 0⤊ 1⤋