When you get a loan, you will receive a printed copy of your payment plan. It will appear in spreadsheet form with multiple columns. These columns will have labels such as “balance due,” “payment total,” “principal due,” and “interest,” and there will also be a column with the number of payments you need to make. If your payment plan is amortized, the numbers in the “payment total” column will be exactly the same. Continue reading
Loans
Consolidation Loan
A consolidation loan is a single loan used to pay off multiple loans. Using debt consolidation is advantageous for many reasons. First, using a consolidation loan makes it easier to pay off debt, because it is just one loan instead of several smaller loans. This makes it easier to focus on your debt, intuitively, because everything is located in one place. Another advantage of debt consolidation is that it can lower your overall interest rate. Your interest rate with several loans may be slightly higher than your interest rate with one consolidated loan. In some circumstances, debt consolidation can even secure a fixed interest rate, an advantage rarely offered with smaller individual loans. Continue reading
Advantages and Drawbacks of Annual Percentage Rates
The Annual Percentage Rate, or APR for short, is a tool used to compare the cost of loans. Costs like interest rates, transaction fees, late penalties, and other costs, vary by loan. What APR allows you to do to is to have a standardized value to compare the rates of competing lenders1. This article will detail how to use APR to your advantage. It is not a perfect standard, and admittedly has limitations; however this tool has some value and may be helpful when choosing a lender. Continue reading
When should I refinance my car?
If you’re renting a car, you’ve taken out a loan and you’re making monthly payments. It is possible to change the amount you are paying, or refinance the loan, and there are times when a refinance would be advantageous to you. It isn’t for everyone, so determine if you need one before you get one. Continue reading
How to get holiday loans for tax refunds
October is on us now, meaning the end-of-the-year holiday season is approaching soon. (You’ve probably already seen Christmas products in retail stores, before you’ve even bought that pumpkin for Halloween.) That means you’re most likely thinking about getting that special someone or your kids a few gifts, gifts that might put a hole in your pockets. In the currently struggling economy, you know about the dangers of having too much debt. If you read the article about charge-offs, you know some things with candy-coated names are not as sweet as they seem. The holiday loan is another one of these items. Continue reading
What is Private Mortgage Insurance (PMI)?
Private Mortgage Insurance, or PMI as it is commonly abbreviated, is additional insurance required for most homeowners. Its main function is to protect lenders against loss in the event that borrower’s default on a loan. Therefore under most circumstances you will be required to pay private mortgage insurance. The general rule is if you obtain a loan from a lender that is more than 80 percent of your new home’s value, you will most likely be required to pay Private Mortgage Insurance. In other words, PMI is usually only required if the buyer’s down payment is less than a 20 percent. Continue reading
What does amortization mean?
If you’ve taken out a large loan, chances are you won’t be able to pay it all back in one lump-sum. This is true for most people with a student loan, and this is also true for about 99.9% of people with a mortgage loan. Therefore, you will be paying back the loan on a schedule. Continue reading
Should You Pay Off Your Mortgage Early?
Paying off your mortgage early can be a good strategy for saving money long term. Mortgages are a huge, lifelong investment, and depending on how your mortgage is structured, you may end up paying as much as the value of the home in interest payments! For that reason, it can be quite a money-saver for you to pay more money on your mortgage early. Continue reading
Loans for the unemployed
You might think that you can’t get a loan if you are unemployed. This is not the case. Like any loan, there is risk involved, but it is possible for you to receive a loan if you are between jobs. Continue reading
Alternative School Loans are Privately Funded
In today’s world, going to college is becoming more and more important. However, with a bad economy and rising tuition rates at schools, it is becoming more difficult to finance an education. Still, there are several different financial aid options, including one you may have not considered: alternative school loans. Continue reading
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