Taking out a loan is very common indeed all throughout the United States. After all, many parts of life are quite hugely expensive indeed, making it difficult for people to afford without some kind of financial assistance. For a great many people, taking a out a loan helps to keep life moving forward as is necessary. And there are certainly many different types of loans available to people all throughout the United States, loans for many different facets of life.
For one thing, taking out a student loan is something that most people getting a college education will have to do at some point in time or another. After all, the cost of going to college has only continued to increase, while the average pay that people can expect to receive after college has not actually gone up by all that much. Therefore, taking out student loans can help to make college affordable in the first place, opening up a world of opportunity for students who would otherwise simply not have access to higher ed learning. And student loans can even help to cover the cost of living for students who are in need of help in this area.
Of course, student loans are far from the only type of loan available here in the United States. Getting a private mortgage (also referred to as a privately funded mortgage) will become necessary for a huge amount of the population. In total, as of the January of last year, more than $9 trillion was owed in mortgages all across the United States. This makes sense, as housing prices tend to be high enough that simply paying for a home completely out of pocket is not really a reality for the vast majority of people. Instead, mortgages of all kinds allow people to pay off the cost of their home over a period of time. And while there are a number of different types of mortgages available when you buy a home, there is likely to be one out there that best suits your needs as an individual or a family.
Business loans – particularly for small businesses of any kind – are also commonplace. After all, getting a small business up and off the ground can be a difficult thing. Taking out a business loan when opening a business can help to make up for the cost of getting said business up and running and off the ground. Therefore, the business loan is a very valuable thing, especially here, in a country where small businesses actually make up more than 99% of all businesses based on U.S. soil. And with 40% of all business owners having applied for such a loan in the year of 2017 alone, it is clear that the business loan still plays a prominent and important role.
Hard money loans, as obtained from a hard money lender, also very much have their place. Hard money lenders and loans have been around for quite some time now, as a matter of fact, the term “hard money” In regards to both hard money loans and hard money lenders have been coined back in the 1950s. As hard money lenders can tell you, hard money loans are distinct from other loans for the fact that the amount loaned out is a number that is based on property assets, not credit. Therefore, hard money lenders tend to work with investors buying a property to later sell again.
There are some other factors that set apart hard money lenders and loans as well. For one thing, the duration of your typical hard money loan as given out by hard money lenders tends to be on the short side. In many cases, the duration of the loan will encompass only around half of a year – or no more than two full years at the very most. In addition to this, such hard money loans are always interest only. Another defining feature is that these hard money loans will also only be available for properties that will not be occupied by the owner of said property. Therefore, hard money lenders will not give out loans in place of a typical mortgage.