What’s the Difference between Best Egg Personal and Secured Loans?
Best Egg is pleased to offer two choices to help you meet your financial needs.
Best Egg Personal Loan UNSECURED | Best Egg Secured Loan SECURED | |
|---|---|---|
| SAME DAY OFFERS | YES | YES |
| ORIGINATION FEE | YES | YES |
| FIXED MONTHLY PAYMENTS | YES | YES |
| COLLATERAL NEEDED | NONE | ITEMS ATTACHED TO HOME  |
| HOME CO-OWNER CONSENT REQUIRED | NO | YES |
| PREPAYMENT PENALTY | NONE | NONE |
| REPAYMENT |
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How the Best Egg Secured Loan Works
Complete the application online in about 10 minutes
Receive your funds in your account in as little as 3 days
Best Egg handles paperwork and files a lien on your fixture collateral
Repay through fixed monthly payments and no prepayment penalties
Frequently Asked Questions
What is the difference between Secured and Unsecured personal loans?
While both unsecured personal loans and secured loans are offered based on your personal credit history, secured loans also require the presence of collateral.
What is the difference between a Best Egg Secured loan and other companies’ traditional home equity loans?
For starters, home equity loans use your entire home as collateral, while Best Egg Secured Loans are only secured by the fixtures in your home – not the home itself. It’s this unique difference that helps us get you the rates you deserve without putting your home at risk.
In addition, traditional home equity loans can take several weeks to fund and involve multiple in-person appointments. With a Best Egg Secured Loan, you can complete everything online in a few minutes and receive your money in as little as one day.
To boil it down: Best Egg Secured loans are easier to obtain and often offer much faster funding than home equity loans.
What is a lien?
A lien is a right you grant on something you own – called collateral - to secure a debt. It gives a lender the right to take possession of this collateral under certain circumstances.
If you decide to take out a Best Egg Secured Loan, Best Egg will give public notice of the lien by filing a document called a UCC-1, usually with your local government. The lien and UCC-1 filing will be removed when your loan is fully repaid.
What collateral is used to secure a Best Egg Secured Loan?
The collateral used to secure your Best Egg Secured Loan could include anything you typically wouldn’t take with you if you were to move to a new home – think window shutters, built-in bookcases and shelves, ceiling fans, water heaters. Some states define fixtures slightly differently, but generally collateral does not include personal items, household goods, or appliances that are not permanently attached to your home.
Does the value of my fixtures determine the loan amount I could qualify for?
No. The Best Egg Secured Loan is secured by whatever the fixtures are in your home - the value of the fixtures themselves have no impact on your eligibility.
Can Best Egg repossess the fixtures in my home that serve as collateral for my Best Egg Secured Loan?
Only if you sell your home prior to repaying your loan in full and do not repay your loan in full within 30 days thereafter. In this case, the lien placed on the fixtures in your home gives Best Egg the right to repossess them.
Will a Best Egg Secured Loan impact my ability to borrow more money against my home?
There’s a possibility other lenders may take the lien into account, which could affect their decision to lend more money to you.
Do I need the signature of my home’s co-owner to get a Best Egg Secured Loan?
If any co-owners are listed on the deed or title of your home, at least one will need to provide consent for your Best Egg Secured Loan. With that said, co-owners will not be considered borrowers and will not be responsible for repayment of your Best Egg Secured Loan.
What if…?
What if I don’t have equity in my home?
The Best Egg Secured Loan is currently only available to homeowners with equity. If you don’t have equity in your home, you may still be eligible for an unsecured Best Egg personal loan!
What happens if something in my home breaks and I need new fixtures?
If you need to replace something in your home, no worries. Replacing your existing fixtures, or even deciding not to, will not impact the terms of your Best Egg Secured Loan.
What happens to my home if I miss a payment on my Best Egg Secured Loan?
Nothing. Because the collateral for your Best Egg Secured Loan is fixtures in your home, and not the home itself, Best Egg cannot foreclose on your home.
If you run into an issue making a payment on your loan, please contact us so we can discuss any options we may have available for you.
What if I want to refinance my home?
Your mortgage lender may require all liens be removed before you can refinance your home. To remove the lien, your Best Egg Secured Loan will have to be paid in full first.
What happens if I want to sell or transfer my home before my Best Egg Secured Loan is fully repaid?
Your home may be more difficult to sell, as potential purchasers may require that the lien is removed at or before closing the sale. If you sell or transfer your home without repaying the loan in full, the lien will remain, the new owner will be subject to the lien, and your loan will become due immediately and payable.
What if I sell my home and I don’t have enough money to repay my Best Egg Secured Loan?
If your home is sold before your Best Egg Secured Loan is repaid in full, Best Egg could declare your loan in default, making your unpaid balance immediately due and payable. Note that the selling price of your home will not affect the remaining balance on the loan.
What happens if my home goes into foreclosure?
Although Best Egg will never foreclose your home, we may participate in your bank’s foreclosure process so we can collect the unpaid balance of your Best Egg Secured Loan. If the foreclosure process doesn’t satisfy your obligations, Best Egg could declare your loan in default, making your unpaid balance immediately due and payable.
More information about unsecured personal loans can be found in our Resources Section.
Community States FAQs
What is a Community Property State?
Some states in which Best Egg Secured Loans are available grant certain property rights and obligations to people who are married (including registered domestic partnerships and other similar legal relationships in some states). In these states, a person may automatically have an interest in property acquired by the other party even if you are not both named on the deed or title.
Which states are currently Community Property States?
The Community Property states in which Best Egg Secured Loans are available are Arizona, California, Idaho, Nevada, New Mexico, Texas, Washington, and Wisconsin.
Why does my marital status matter?
If you receive a Best Egg Secured Loan, then the fixtures in the home you listed as your address on your loan application will become collateral to secure repayment of the loan. If this address is in a Community Property state, then your spouse (or other person who has community property rights under state law) may have an interest in the property, including in the fixtures. Best Egg will therefore require assurance that each of you, and any other owner of the property, are aware of your Best Egg Secured Loan and will not block access to the property or interfere with our ability to collect on or enforce your loan.
Do we both need to need to consent to my Best Egg Secured Loan?
If you are a resident of a Community Property state, and are in a covered relationship, then both of you must consent to the Best Egg Secured Loan. The Best Egg team will contact you both with instructions on how to provide consent electronically.
What if I am married or in a similar legal relationship and live in a Community Property State, but we are separated or have filed for divorce?
This can vary depending on the state that you live in and we would recommend that you seek legal advice if you have a question about the legal status of your specific situation. In order to finalize your Best Egg Secured Loan, however, Best Egg will require both of you, and any other owner of the property, to consent to the security agreement.
What if we are not both named on the deed or title to the house?
While each state may vary, generally Community Property states view assets – including residential property and the fixtures in the property -- acquired during the marriage or legal relationship as equally owned by both parties, regardless of who purchases the asset or whether both parties are named on the deed or title.