There are various consumer loans available on the loan market. Examples of consumer loans are mortgages, auto loans, student loans, personal loans, etc. Most consumer loans are in the form of installment loans. The loan is dispensed by the lender in one lump sum and over time, the loan is paid back to the lender.
Businesses also take business loans to expanse their business, to purchase equipment, to buy a new office space, for general business expenses, and etc. Business loans can range from a few thousands to over a million dollars, depending on the eligible of the applicants.
Sometimes, consumers apply for bridge loan to buy another house before they could sell their existing house. Basically, bridge loans are temporary loans taken to pay as down payment for the new home while waiting for the existing home to be sold. The fees charged for bridge loan lenders may fluctuate or vary among lenders and location.
Bridge loans offer more benefits for borrowers even though bridge loans are generally more expensive than home equity loans. Many lenders won’t release loans on a home equity loan if the existing home is still on the market. It is safer to sell off the existing home first before buying a new home. You wouldn’t know when you will get a buyer for your existing home and you wouldn’t want to end up financing 2 homes while waiting for the buyer to come along.
Another loan that most people do not know of is the probate loan. During the probate process, if the heir inherits any mortgaged properties, he or she will have to pay off the mortgage. The heir will have to choose whether to keep the properties or to sell them off to pay off the mortgage. While waiting for the probate processed to be completed by the court, the heir might need to take a probate loan to cover funeral expenses, property taxes, and etc.
What happens if a consumer needs some money to pay off overdue taxes or a car title loan urgently but couldn’t secure a short-term loan from the bank? This consumer could use the value of the car or value of house to serve as the basis for a loan from one of the hard money lenders. Hard money lenders are usually private investors or individuals and they charge very high interest rates because of the high level of risk.