I have never really taken a loan out on my house, or using my house as collateral. But has anyone here done so? Has anyone had to take out loans in this way? Were you able to pay it all back and protect your house?
Taking a loan on your house a bad idea?
- Thread starter Grant
- Start date
If you intend to profit by investing in your house, renting your rooms or flat for example, you might take a loan for your house. However, if you are only concerned with improving your house it is a bad idea.
I don't believe that taking a loan for your house is a bad idea, as long as you have the resources that can help you to pay back the loan you collected without giving you issues
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To me, I think it is a bad idea to take loan on your house. I believe you can easily rent out your house and make money from it rather than using it as a collateral.
What happens if your can't repay back the loan?
What happens if your can't repay back the loan?
I have not done that but it's something i will do if investment opportunity comes up. I can take a loan in order to build a house to rent it out and make profit from it. But if it is for personal settlement I may not be able to do.
Do you mean putting a lien on your house? That is the only way I have ever heard of such a thing.
I don't think it is a good idea for most people or most circumstances because it is very risky.
I don't think it is a good idea for most people or most circumstances because it is very risky.
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The ability to pay back is very important. If you have an income source that can pay your mortgage fees, you might go ahead. If you plan to rent out your property, getting a loan for a house can also be a good decision
It could be very traumatizing that you once had a house and all of a sudden, you become homeless. That is why I can't ever stake my house as a collateral for a loan. This should only happen when you are 100% sure that you can pay back.
If you really want a house, it's not such a bad idea because houses are ridiculously expensive and will increase because of the increasing popularity of people. Just make sure you will be able to pay it back; if not, don't even try because you can get into huge trouble if you don't pay it back.
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I have never done this Before though and honestly i wont even advice anyone to do this. If the situation is something you can sort out without taking a loan i would advice you do so. If anything goes wrong it means you no longer have a house. A lot of persons have lost their homes like this.
Yeah, that's what scares me the most. If you won't be able to pay it back, you will be in huge trouble, so first you need to really count every penny and think about whether you will be able to pay it back.
Taking a loan on your house could be a good idea if you use the funds to make home improvement or consolidate debt with a lower interest rate. However, a home equity loan is bad idea if it will over burden your finances or only serve to shift debts around.
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Yes, That is one of the disadvantages of using your house as a Collateral. If you are unable to pay back every single penny. Then your house is gone. Double losses for such individuals. There are a lot of memories in your house and everything would be gone just like that.
Personally I think taking a loan on your house is very risky and to some extent, it may even affect your opportunity of having a house again in life most especially the purpose of the loan is not fulfilled.
It is not a bad idea at all as most of us go for a home loan to buy a house. It is not possible to save that much money and then buy a house.
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The decision to take a loan on your house depends on your financial situation, needs, and goals.
It's important to carefully evaluate the potential benefits and risks, assess your ability to make loan payments, and consider alternative financing options to avoid future problems.
Consulting with a financial advisor can also provide you with guidance based on your situation to help you make the right decision.
I would take interest-free loans. However, I would never borrow money at all until or unless I am 100 percent sure that my investment would prove to be 100 percent successful and i would generate profits in a guaranteed manner.
It is not a good idea taking loans and using your house as a collateral because anything can happen and you might lose your house except you have other properties.
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Yes, first you really need to make sure you will be able to pay it back in time. Some people get into debt, and it's really hard to pay it back. You can lose everything if you don't pay it back in time.
I believe that you're talking about making use of your house as collateral before you get a loan from a bank and if that is the case, it is something that I will never be interested in doing because when it comes to getting loans from any kind of financial institution. It is not something I am open to doing.
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