Using an Unsecured Personal Line of Credit to Purchase a Home

In areas where home prices are low, an unsecured personal line of credit may be a better option than taking out a traditional mortgage. This is especially true when you are purchasing a distressed property for very little. Using an unsecured line of credit to buy a house avoids the lengthy and tedious process of taking out a traditional loan. You can pay it off early without an penalties if you receive a financial windfall or sell the property quickly. While the lowers interest rates on mortgages may seem attractive, the pre-payment penalties and long-term commitment may actually cost you more in the long run. Consider an unsecured personal line of credit for your next home purchase if it will be relatively inexpensive.

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