How frustrating would it be to own your own home and know that it is worth hundreds of thousands of dollars, but still be pressed for money? This is the type of situation where Alpine Credit can come in handy. If you have property in your possession that has stored value to it, you may be able to use that stored value as leverage to secure a great deal on a loan. There are still downsides to choosing to do this, but in many situations, this will be the best option you have to get a loan at an affordable rate, or even to get one at all.
What It Means To Borrow From This Lender
Alpine Credit specializes in secured loans, which means loans that are backed up by more than just your assurance that you will pay what you owe. To do this, you must agree to give the lender temporary control over an asset that can be sold if you do not pay your debts. They cannot sell these things under any other condition, so you do not have to worry about them double-crossing you and scamming you out of your possessions. Many lenders will use cars for this purpose, but Alpine uses paid-off or partially paid-off houses instead, making them a home equity lender.
As stated, to access, this lender’s secured loans, you’ll need to agree to use your home’s value as collateral. To determine what amount of that you hold, an assessment will be conducted that weighs the current value of the home against any remaining mortgage balance you might have. The remainder is what you’ll use to get your loan, and the higher that amount is, the better the deal you will be offered. If you do this, you’ll be able to borrow up to $35,000 depending on your income and the amount of value your home holds. You’ll be paying far less on this amount than you otherwise would, too – this company boasts rates as low as 3% in some cases, although the people who qualify for these extreme discounts are the exception and not the rule. You’ll pay this money back over the course of several months, the exact length of that period depending on how large the full amount is.
Unsecured Loans Are An Option Too, But Beware the Price
Owning your own home is an increasingly rare luxury these days, so what about if you’re not one of the lucky few who does? Alpine Credit does still have options for you, but they’re not nearly as appealing as what you would get if you had something of value to sign over to them. Because you don’t have those items of value to act as insurance for your loan, they see lending to you as a greater risk and they charge more money in order to keep the potential costs of that decision in check. These loans can and do charge interest rates as high as 47% in some cases, making them extremely expensive to choose.
While this rate is not unheard of and you would need to have spectacularly bad credit to actually get such a terrible offer, you obviously do not want to put yourself in the position of paying those exorbitant rates if you don’t have to. Be sure to shop around a little and see what you can get from other lenders if you find yourself in this situation, since it is unlikely that Alpine Credit will truly be your best or only choice. You’ll be better off working with a lender who generally deals with clientele who want unsecured loans, since they will be more likely to offer you better deals and service, both of which you deserve.
Potential Problems Ahead
By this point, Alpine Credit’s home equity loans are probably looking like a really good idea; if so, though, there are a few things you should know about them before you apply for them. This structure of loan helps you to get a better deal than you normally would, but it comes with its own risks. As mentioned, to get one, you’ll have to sign over temporary ownership interest in your house. This concession will end as soon as your loan has been repaid, but until then, its existence puts you in a somewhat precarious position.
The reason for this has to do with what is asked of you to secure these loans. Signing over some of your home equity means that you lose control over that asset if the events stipulated in your contract come to pass. This means that if you don’t live up to the promises you’ve made, your home (and with it, likely most of the wealth you have accumulated over your adult life) could be in jeopardy. It doesn’t matter if you had every intention of paying the loan off and things just didn’t go the way you planned, either – if you fail at this task for any reason, you’re stuck facing the consequences. You’ll lose your asset and still need to find yourself a place to live as a replacement, costing you even more money that you probably don’t have.
With all that having been said, though, it must also be said that there is no reason for you to fear these consequences if you follow through on your promises to repay your loan on the agreed-upon schedule. Alpine Credit is an honest business that has been around for many years and served thousands of customers, and they are not out to swindle you out of your house. They only want to make sure that they will be able to get their money back. As long as you make sure that you’ve given them that, they have no reason to further pursue you or your assets. Pay on time, pay in full, and never try to weasel out of a loan that you know you are responsible for paying, and you shouldn’t have any big problems even in this uncommon arrangement.
Why These Loans Are Still Worth the Risk
Taking out a secured loan from Alpine Credit could end badly, but many people will find that it offers an acceptable level of risk considering the benefits it can bring. The potential lowest interest rate noted above (3%) is incredibly generous, particularly for loan accessed online. That’s lower than what many traditional banks will charge you, never mind what you would pay on a personal loan from an institution that is less picky about the credit scores of its clients. Rates of 20% and even more are common online, and that’s on the low end of things. By choosing an Alpine Credit loan that is backed by your home’s value, you could end up saving yourself thousands of dollars. When the difference in fees is that large, you may suddenly find that loans that you could not have otherwise easily afforded now fit into your budget without much trouble at all.
Another factor to consider is whether or not you would be able to qualify for a loan at all if you were to seek a more conventional one. Since home equity loans are virtually risk-free for the lender, they are often extended to people with poor credit at very generous rates. Someone who wouldn’t be able to secure an approval on their own merits might have an easier time doing so if they can back up their promises to pay with a tangible asset. When you really need to borrow, all you care about is that you get that chance, not what it might cost you if you go astray. That’s no excuse not to think about the potential consequences and act accordingly, but if you’re truly in a desperate situation and cannot afford not to tap into the opportunities you have, this one at least might be an option for you to consider. At that point, the risk is more than worth it.
Are You Ready For An Alpine Credit Loan?
Whether or not it makes sense for you to choose Alpine Credit for your lending needs all depends on what you own and your level of risk aversion. If you aren’t a homeowner, there’s really no point in choosing this company specifically. If you do own a home of your own, you need to be comfortable with the fact that that home is essentially being held hostage until you can complete your repayment obligations. This is very much a vague and distant threat, though, since you can still use your house as normal during the borrowing period. As long as you live up to your word and do what you said you were going to do, you shouldn’t have any problems with unpleasant consequences with these loans. Instead, you’ll just get to enjoy an excellent interest rate that makes the slight anxiety the setup may induce more than worth sitting through.
Here are some other interesting articles from out website:
Alpine Credit | More Information About this Lender
Your Home Could Help Fund Your Next Loan With Alpine Credit