Tag Archives: loan rates

Free Loan Rate

When you apply for a loan, the loan company will give you a free loan rate quote. They do not charge for this service and it will give you a chance to decide if a loan is the right move for you. There is a lot of talking going on about the home loan interest rates and this seems to be a major bone of contention with many. Some say that this is the reason for the failing housing construction industry as well as the downturn in real estate sales. And so many are very wary of taking out loans. This is why financial institutions are giving out free loan rate quotes so that people can compare them and pick which lending company to go with.

Lending companies are extremely competitive with their interest rates. They know that people are desperate to get their bills paid off and with unemployment on the rise, this is a last hope for most. Not everyone needs a home loan though. Personal loan rates are somewhat higher because of the nature of the loan. That is because these are normally unsecured loans.

The need for these kind of loans is usually for unexpected expenses such as hospital stays, vehicle repairs, home repairs and sometimes a need for debt consolidation. There are certain precautionary steps that must be taken first before considering a loan. Determine your needs down to the last cent. This way you know exactly how much to apply for. Shop around on the internet for free loan rate quotes and compare these very carefully. You can lower the amount of your loan balance by paying as much up front as possible. If you have a good credit score you can get better free loan rate quotes.  The better your credit rating the more eager the lenders will be to accept loan applications.

Do some heavy research on lending institutions before deciding on one. Ask family or friends if they have had any dealings with loan companies or ask for suggestions for a loan company if they have had personal experiences with one. Don’t be shy about asking the company questions especially if you are going to be giving them monthly payments. You need to find out as much as possible about how long they have been in business and if there have been any complaints. Check out several and compare the free loan rate quotes.

You have to be careful when asking for a free loan rate quote over the phone because, very often, the quote given is not what it will actually be. In person is a much better way to ask for these quotes so you can actually see the person that your talking to. Lining up a cosigner ahead of time is always a good idea because many times lenders will ask for one especially if you have bad credit. The cosigner’s assets are used as collateral for the loan.

Always be sure to check the amount a second time before signing any contract and read the contract completely…every line of it. Don’t agree to anything before reading the fine print. Payment schedules should be agreed upon before the signing. That’s why you need to compare free loan rate quotes.

Private Student Loan Rates

Here is some information you need on private student loan rates. With rising college costs today, taking out private student loans is a critical decision. In actuality, federal loans should be considered first since they offer the best rates. Of course a private student loan is your decision and they are on the rise. Private student loan rates are at 25% and the rate of lending on federal student loans is at 8%.

First, you should a Federal Stafford Loan before getting a private student loan since one loan rarely covers all expenses. You should also file a FASFA application. You may be surprised to learn that you qualify for a grant (which you don’t have to repay). After that application, then apply for the private student loan.

Before you apply for the private student loan, first check out the rates charged by the lender. Shop around for the loan the same way you would shop for a car. Check into the lenders credentials and see how long they have been giving out loans. Keep in mind that a low interest rate looks tempting but also find out if what kind of fees they charge. It could instantly turn out to be more expensive if the private student loan rates do not justify the higher fees involved. Also find out if they charge a penalty for early repayment. If the loan has higher interest rates then the fees are usually already added in. Compare repayment plans as well. If you have a longer term loan, then the APR will be reduced. This will mean lower fees on the private student loan rates.

The best loans that you can get from private lending institutions offer interest rates which have the prime rate minus 0.50% or the LIBOR plus 2% and there will be no fees at all. In case you don’t know what LIBOR is, it’s the interest rate that banks charge each other for different types of loans. However, only those with the best credit ratings are able to get the LIBOR rates. Rule of thumb is to check with your financial aid office first before doing anything else.Also be sure and make the repayments on time. The private student loan does have a little looser conditions but still you should use caution. It is easier, though, to get a private student loan than it is to get a scholarship. Private student loans do not have to be repaid until after graduation and you can always consolidate your loans.

One thing that is vital to remember..never, ever make your repayments with a credit card. This will drive up the interest rate on your credit card and that will make for even worse financial problems. Consolidate if necessary. You may prefer a grant such as the Pell Grant which never has to be repaid. Don’t let private student loan rates become a nightmare which ruins your credit. Take your time choosing a private student loan lender. But be sure to apply before the application deadline.