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The harsh economic times existing currently have made it quite hard for people to own houses without mortgages. This is mainly due to the reason managing finances has proved to be quite a task thereby making it hard for people to save up money to purchase a house. Usually, there are two types of mortgages, long term mortgage and short term mortgage. The main difference between these mortgage types is seen in respect to the repayment period of the loans. For the long term mortgage loans, the repayment period is quite long and stretches to years such as 20 years. On the other hand, the repayment of short term loans is quite small as it is usually less than 3 years. Short Term Loans Perth is offered by different financial organizations and institutes all across Perth. It is important to note that these loans are just like other loans. They have interest rates and grace periods within which the loans are to be repaid back. This is quite important especially due to the reason that there is need to ensure that the loan repayment period is observed. This is so as to avoid having to pay penalties that can easily lead to great financial burdens. Financial analyst’s advice that there should be a higher preference for short term loans as compared to the long term ones. This is mainly due to the financial advantages and disadvantages associated with each of the loans. For starters, long term loans usually range from about 6 months to 25 years. It goes without saying that the longer the repayment period for a loan, the higher the interest to be repaid back together with the principle amount. High interest rates have a great impact on the borrower’s financial muscle and may therefore bring about great financial strains .This is both when paying back the loan and after the loan has been repaid before the borrower’s finances stabilize. Short Term Loans are by far more advantageous than the long term ones especially in the long run. This is despite the fact that short term loans are limited in their size in that their amount is lower than that of the long term ones. However, despite the difference in their amounts short term loans edge out as the best option as their management especially repayment is quite easy to achieve. Generally, long term loans are not financially viable specifically for people who operate on tight budgets. This is because of the reason that the loans put the borrower in a worse financial situation than before. Before borrowing any loan, it is important to calculate and access the financial impact that the loan is bound to have on you. This is because loans are tailored to help borrowers overcome their financial struggles as opposed to putting them in worse financial ruin. Therefore, it is highly important to ensure that you seek advice and general assistance when applying for loans. This is very important as it helps in ensuring that you are able to settle for a long that is effective in helping you overcome your existing financial hurdles. At http://www.westcoastfunding.com.au the harsh economic times existing currently have made it quite hard for people to own houses without mortgages. Please check our services Click here..
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