What Loans Can You Get in Maryland

When you need money, the first thing you turn to is friends or relatives. But they don't always have the amount you need. In addition, many people do not want to interfere with the money issue in relationships with their loved ones. In this case, a loan will be an excellent solution. First, you can borrow any amount of money. Secondly, the loan repayment period can also be any. Thirdly, you can make the necessary payment amount and not collect money for the borrowed amount at home, constantly risking taking a little from there in case of any financial difficulties.

Loan Types

There are different types of loans, and it is possible to find one that suits your needs perfectly. They differ in the presence and absence of collateral, the term of the loan repayment, the amount you can borrow, and many other factors.

Personal loan

Personal loans are often unsecured. This is a fairly versatile type of loan that is suitable for many needs. It can be taken for a wedding, home renovation, or a trip to the islands. Most often, personal loans have fairly flexible terms, long repayment periods and moderate monthly payments, unless, of course, you have borrowed a huge amount of money—the better your credit score, the better conditions for a personal loan you will receive.

Mortgage

A mortgage is a loan to buy a house. Mortgages usually have very long repayment periods, up to 30 years. Even though a mortgage is a secured loan, your credit history matters here. The recommended credit score for a mortgage is 620 or higher. Of course, you can find offers with a lower credit rating, but the interest rates will most likely be pretty high.

Home equity loan

Home equity loans are the first thing to think about if you need a huge amount of money. Home equity loans are, of course, secured loans. And, as the name suggests, your home is the collateral. You can receive up to 80% of the house's value in one payment to your bank account. Usually, your credit history does not affect the terms of such a loan much because the lenders do not risk anything - if you do not pay off the loan, they have the right to own your house. This is a good loan, but before you take it, make sure you can make your monthly payments on time.

Auto loan

This highly specialized loan will help you buy not only a car but also any other means of transportation, such as a motorcycle or a boat. An auto loan is considered secured because you won't own the vehicle you bought until you pay the full amount. Most often, the terms of the loan are not too dependent on credit history, again, due to the fact that the lender has collateral - a car, a motorcycle, a trailer, depending on what you bought.

Title loan

A title loan is a short-term and secured loan. Basically, it is used when money is urgently needed, and there is no other way to get it. You will have to leave the car as collateral, and you can get 25% to 50% of its market value. You will receive the money immediately, but the payment period will be very short, most often no more than a month. But the main drawback of a title loan is not a repayment period but its annual percentage rates. Title loans usually have an average monthly finance fee of 25%, translating to an APR of about 300%.