Anna V asked:


I live in Texas and there are a couple of small homes for sale for about $50.000.
Should I try to get a personal loan and pay it of in 10 years or rather a mortgage loan and pay the house of 30 years? How easy is it to get a personal loan for $50.000 if you have an excellent credit history?

ALFRED

3 Responses to “Mortgage loan vs Personal loan to buy a house?”

1. JASPER on February 13th, 2010 1:38 am

   BART

   A personal loan…you cannot tax deduct the interest.

   You can on a mortgage….along with property taxes.

   That is the difference.

   PS: Many banks will do mortgage loans for 10 years….that is usually the minimum term.

2. TAYLOR on February 16th, 2010 12:48 pm

   JOESPH

   A Mortgage loan will have a much lower rate!

   Plus it will be better for tax purposes.

   You can get them to do a mortgage for 15 years and pay it off sooner, or I think they even have 10 year loans.

   A $50,000 personal loan will be very hard to get even with excellent credit history because it is “unsecured”.

   Get the mortgage.

3. JEFFERSON on February 18th, 2010 5:07 pm

   BUDDY

   Forget the “personal loan” idea. You need a mortgage loan - they don’t have to be for 30 years.

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