You can get a low-interest rate on a home loan for that simple fact. Loans given against collateral will get you a lower interest rate. Banks have the assurance of collecting on their loan if you don't pay. Such loans are considered to be high-risk and many leading institutions have quit writing them completely. Loans provided for the home itself provide money for the construction, including the costs of all building materials required. A person who wants to avoid the risks of increased interest rates and have a fixed income regularly is the right candidate for such a fixed-rate home loan.
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