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Logbook Loan or Secured Loan to Buy an Auto?

A logbook loan or secured homeowner loans are both great ways to buy a car. The main difference between the two is the asset on which the loan is secured. A logbook loan is secured against your new car whilst a homeowner loan is secured against your property.

Logbook loans are secured against your new car. The lender gets the security of your vehicle whilst you benefit from lower interest rates, flexible rates and easy approval for your loan. As you offer your car as security, the lender can ‘repossess’ your car in the event that you fail to keep up your logbook loan repayments.

A secured homeowner loan works in much the same way. A lender takes a legal ‘charge’ over your home when they lend you money secured against your property. This means that they have a legal claim on any money received from the sale of your property. Once any legal charges are repaid, the remaining proceeds of the sale are yours.

So, when choosing a logbook loan or a secured homeowner loan to buy an auto, you need to decide what you are prepared to offer the lender as security.

Many people choose to take a logbook loan rather than a secured homeowner loan as a homeowner loan means your property is at risk if you fail to keep up repayments. If you don’t pay your logbook loan, you may lose your car. However, if you don’t pay your secured homeowner loan, you may lose your home.

However, secured homeowner loans can often offer lower interest rates and cheaper monthly repayments. This is because you can often take the loan over a longer period of time, and the additional security of your property means a lender can lend to you at a lower interest rate.

Both a logbook loan and a secured homeowner loan are great way to buy your new car. You need to consider the interest rates, costs and what you are prepared to offer as security when deciding which is best for you.

To use your home to raise money at a competitive APR, please fill this homeowner loan form.

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