Although it’s true that secure, homeowner loans can be risky because you’re borrowing against your home, there are also a number of benefits which many people choose to overlook when deciding on which source of borrowing they are going to take advantage of.  Of course, it’s wise to read up on the disadvantages of homeowner loans, but once you’ve done that, you should know what makes them a good option for borrowing, too.  Here are 3 of the top benefits you don’t know about.

3 – Fixed Interest Rate

One of the best things about a homeowner loan is that the interest rates are fixed.  This means that you can borrow large amounts of money and not have to worry about the fluctuations in interest rates forcing you into a situation where you’ll have to default on a payment, meaning that if you make your financial predictions accurately, you should have a solid notion of how much you are able to borrow without very much complication.

2 – High Borrowing Amounts

The amount of money which you can borrow up to with a homeowner loan is much larger than with general unsecured loans, so you can use this method to make significant investments such as higher education for your children, a home extension or debt consolidation.  The reason for this is because the lender has a large amount of leverage – that leverage being your house – because if you default too many times on a payment they are legally allowed to take your home from you to make back the money you owe them.

1 – Negotiation

The fact that the lender can take your home from you might seem scary and draconian, but actually, lenders very rarely have to do this.  The reason for this is that they make it easy for you – the borrower – to make payments which you can afford.  This is because they would much rather you make your agreed payments so they can feed off your interest, without them having to take legal action which costs them money and is a significant hassle. In other words, it’s in their best interests to negotiate affordable monthly repayments.

If you’ve always been too scared of the risks of taking out a secure loan, hopefully, reading about the benefits they can bring has made them seem like a more attractive proposition.