What is pledged?
Real estate, vehicle title, or nothing—each path changes LTV tests, insurance, and recourse discussion.
Compare Sky loan types by collateral, rate behavior, and funding cadence
Large expenses can be funded several ways. Structure, lien position, and draw rules often matter as much as headline APR. Use this hub to pick the lane that fits, then go deep on the product page.
How to use this page
Three questions institutional borrowers answer before applying
Leading consumer lending sites separate what secures the lender, how payments behave over time, and what documentation timeline you can tolerate. Sky maps the same three questions onto your private bank relationship.
Fixed or floating cash flow?
Installment amortization vs. revolving minimums vs. ARM resets—model worst cases, not teaser payments.
How fast must you close?
Unsecured personal loans often fund faster; mortgage and HELOC paths include title, appraisal, and investor tolerances.
Model before you commit
Calculators and primers
Secured vs. unsecured borrowing
Secured loans pledge a specific asset the lender can enforce against after default and legal process—your home for a first mortgage, HELOC, or closed end second; your vehicle for an auto or specialty loan. Because collateral reduces investor risk, APR bands are often lower and limits higher for a given payment.
Unsecured installment loans and personal lines do not take a lien on your home or car. Approval rests on credit history, income, debt-to-income, and liquidity. Application can be faster, but pricing reflects the absence of collateral and underwriting may cap amounts more conservatively.
Tax and insurance
Interest deductibility depends on use of proceeds and current law; Sky does not provide tax advice. Real-estate secured credit requires acceptable hazard insurance and, where applicable, flood coverage.
Questions to ask before you choose
- Do I need a lump sum with a fixed payoff date, or ongoing draw flexibility?
- Am I willing to place a lien on my home or vehicle to improve rate?
- How long can I wait for appraisal, title, or survey versus same-week unsecured funding?
- Will combining products trigger subordination, CLTV, or cross-default clauses?
Read the secured vs. unsecured guide on this comparison hub for worked examples and checklists.
Product comparison matrix
Use the links in the last column to open the dedicated education hub for each product.
| Product | Collateral | Rate type | Typical use | Learn more |
|---|---|---|---|---|
| Mortgage purchase / refi | Real estate | Fixed or ARM | Buy, rate and term, cash out | Mortgages |
| HELOC | Real estate (2nd lien) | Variable (index + margin) | Renovation, staged draws | Home equity |
| Auto loan | Vehicle title | Fixed | Dealer or private party | Auto |
| Personal loan | None | Fixed | Consolidation, planned expense | Personal |
| Debt consolidation | None | Fixed | Pay down cards or installment debt | Consolidation |
| Personal line of credit | None | Variable (index + margin) | Revolving liquidity | Line of credit |
| Student loan | None (cosigner common) | Fixed / hybrid | In school gap, refinance | Student |
Fixed vs. adjustable mortgages
Fixed rates offer payment certainty; ARMs can make sense when you plan to sell or refinance before adjustment. Sky shows index, margin, and periodic caps in plain language on the mortgage hubs—not buried in marketing footnotes.
- Match ARM reset horizon to documented relocation or liquidity events.
- Keep reserves for first reset payment shock even if the index is benign today.
Choosing a structure (quick scan)
Collateralized loans usually offer lower APR bands than unsecured installment credit, but they move slower and carry asset risk. Lines behave differently from closed end loans. Use this table as a conversation starter—not a substitute for personalized pricing.
| Need | Often fits | Tradeoff |
|---|---|---|
| Predictable payment, car as collateral | Auto loan | Title perfection, insurance loss payee |
| Revolving access to home equity | HELOC | Variable rate after intro; draw discipline |
| One-time lump sum, no lien | Personal loan | Higher APR band; faster close |
Frequently asked questions about comparing loan types
What is the difference between a secured loan and an unsecured loan?
Secured loans require collateral that the lender can claim through legal process if the loan is not repaid; unsecured loans rely on your credit profile and income. Secured structures often offer lower APRs but involve title, appraisal, and insurance steps unsecured paths may skip.
How does my credit score affect offers?
Scores influence rate tiers, approval, and required reserves, but underwriters also weigh income stability, utilization, and collateral. Mortgage and HELOC pricing may include investor-specific adjustments beyond score alone.
Can I combine products?
Sometimes—ask about subordination, CLTV, and cross-collateral policies before stacking unsecured and secured debt.
Which closes fastest?
Unsecured personal loans often fund quickly; mortgage and HELOC paths include title and appraisal.
Where should jumbo clients start?
On the mortgage hub and eligibility primer—reserve documentation for large balances differs from agency conforming paths.
Examples are illustrative; approval and pricing are subject to underwriting.
Related hubs
After you pick a lane, go deep on calculators, applications, and disclosures.
