A loan is an amount of money that refers to a credit type in which a sum of money is lent or borrowed to another party in exchange for future repayments of the value or the principle amount. The credit may also be available as an open-ended line of credit. Interest is usually applied to the principle amount. Loans can come in different forms, some of which are secured, unsecured, commercial, and personal loans.
Simply put, a loan is debt accumulated by an individual or entity. The lender is usually a financial institution, government or business-processed an amount of money to the borrower. The borrower will agree to whatever terms are set forth by the institution including any finance charges, interest repayment, and other conditions. In different examples, the lender may require an asset or collateral to ensure that the loan will get re-payed. A loan can also be a certificate of deposit (CDs) It is also possible to take a loan form a 401(k) account.
There are some things in life that you may need to purchase out of necessity or pleasure. Sometimes these things can be quite expensive and unless you have the money laying around, they aren’t an option. This is when a loan is the perfect tool for the job.
Michael and Melissa are always a pleasure to work with. They are extremely responsive, professional and work hard to get the best loan for us. I would recommend Colorado Mortgage to anyone. Thank you for another great experience!