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What are the differences between car loans and housing loans?
The differences in terms of all aspects
By
dread_manson
Posted on
04/26/06 Total Answers
4
Answers-
The major difference is with one you get a car, and the other you get a house. Lol. Seriously though, the difference is interest rates and length of loans.
Answer by :
dragonfiredesire On Date
2006-04-26 21:08:58
1. There time frame differs.
2. A car depriciates during the life of the loan and the home appriciates during the life of the loan.
3. Home loans most generally have a better interest rate than that of a car loan as a bank and or credit union has to make there money on a car loan in a shorter time span. Each payment on a car loan makes the principle payment go up more quickly. On a home loan it seems to take forever to actually start paying on the principle on the home.
4. A home ties a person down more than a car. When you purchase a home you are planning to stay in the area for quite sometime.
5. A home alomost always requires a down payment of 20% of the appraisal value of the home or 20% of the asking price which ever is greater.
Answer by :
jk On Date
2006-04-26 21:13:10
Car loan use a car as collateral, the term is usually 3 to 6 years. If you don't pay the installment, they will just tow your car away.
Housing land use the real property as collateral, the term is usually 10 to 30 years. If you don't pay, the bank have to go to court, forclose the property and sell it through auction.
Answer by :
kt On Date
2006-04-26 21:15:31
Car loans are usually taken out for 5 to 7 years where a home loan is taken usually for 15 to 30. Interest is higher on a car than a home loan. Car loans are simpler and less paper work. It could take a couple of months to finish off buying a home. You would typically need better income and credit for a home loan than a car loan. Cars lose their value where a house increases it's value.
