Personal Investment & Loan Tips : Short-Term Secured Loan Tips


This is Patrick Munro talking about short
term secured loans. Short term loans are loans that are designed to be implemented over a
short period of time, sometimes thirty days, more often than not on a quarterly basis,
that’s every ninety days, sometimes six months, and oftentimes to a maximum of one year. These
loans are oftentimes needed to be secured, and of course most of these loans are designed
to be secured by underlying assets. The most popular short term secured loan is an interim
construction loan for the purpose of building a house. More often than not the bank will
take the lot that the house is built on as the initial security and then it will have
the house as it comes out of the ground and becomes built up, that also becomes the short
term security for the bank. At the end, when the house is completed, you have a strong
asset that is normally worth more than the original loan, and then a permanent loan comes
along to take out the short term loan which has been securitized by the underlying lot
and the house. This is Patrick Munro talking about short term secured loans.

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