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Also known as 'discount points', points are fees which are paid to the lender to 'buy' a lower interest rate for the mortgage loan....Read More
YP AnswersThere are seven types of loans:
- Open ended loans, which that you can borrow over and over, like a credit card or lines of credit.
- Closed ended loans, which are one-time loans that cannot be borrowed again once repaid unless you reapply for another one.
- Secured loans, which rely on assets as collateral for the loan. Failure to pay the loan means you lose the asset.
- Unsecured loans, which don’t require collateral, and rely solely on your credit history and income as qualifiers.
- Conventional loans, which are not insured by a government agency like the FHA. Conforming conventional loans follow guidelines set by Fannie Mae and Freddie Mac, while non-conforming loans do not.
- Payday loans, which are short-term and borrowed against your next paycheck as a guarantee for the loan. Payday loans are bad deals for the borrower.
- Advance fee loans require the borrower to pay a fee in advance of the loan and are typically one of the loans most connected with scams. Avoid payday and advance fee loans at all costs.
- If you’ve been turned down repeatedly, try setting up an in-person interview with the lender to discuss your situation and make a case for your creditworthiness. If you have bad credit, there are still ways you can get a loan: credit union, tends to be more user-friendly (but they still want their money back) than a bank.
- Get a co-signer for your loan.
- Access your home equity, if you are a homeowner.
- Online personal loans can be a fast and easy solution, often specializing in debt consolidations.They can usually make a loan determination quickly.
- Try a secured loan (where you borrow against an asset).
YP AnswersThe most common types of loans are personal loans (typically for smaller purchases), credit cards, home equity loans (where you borrow against the equity you’ve built up in your home), mortgages, home equity lines of credit (similar to home equity loan, but you have a revolving line of credit), cash advances (offered by credit card companies, or any entity that will loan money based on an expected future income), small-business loans (for entrepreneurs or established small businesses looking to expand), and consolidated loans (usually used to pay off debt and mortgages loans for homes). Auto, home, and student loans are also three very common loans....Read More
YP AnswersSimply put, an interest rate is the amount at which a lender charges you to use their money or credit. It is usually a percentage and is based on the annual percentage of the average outstanding balance. You may have an 8% interest rate, which means you will be paying, over the course of the loan, 8% annually, on the average annual percentage of the amount you owe. Mathematically it looks like this: interest = principal x rate x time....Read More