There are basically two types of loans that banks offer to their clients.  One type is the secured loan and the other type is the unsecured loan.  In reality, only a very few bank clients will qualify for an unsecured loan.

In today’s economy; getting a home loan isn’t an easy task.  Just a few years ago, even those that had experienced the worse of credit circumstances were gifted with a loan for their first home.

Generally speaking, there are two types of loans most banks or financial institutions will offer their customers.  One is the fixed rate loan and the other is a variable interest rate loan.  For this discussion, we will assume the loan is secured by the borrower with some type of collateral, i.e. a house or vehicle.