1. Getting a loan is not an easy task. Here is an article
that talks about the various aspects that need to be
considered before applying for a loan.
loandirectorysg
2. You do not apply for a loan on a whim There are a lot of factors to
consider before putting yourself in an irreversible situation You have to
remember that once you put your signature on that contract, or at least
after the usual 3 day grace period, there is no turning back The inability
to repay one's loan could lead to major changes in one's standard of
living Secured and unsecured loans are the most popular loans
available in the markets A secured loan is usually taken out against
collateral
3. The process of acquiring this kind of loan is much quicker especially for
those who have bad credit history and low credit rating Since there is
already a tangible asset that can be defaulted to if the loan remains
unpaid, finance institutions give much lower interest rates for secured
loans But if you fail to pay, you will have to be ready to give up your
property An unsecured loan on loandirectorysg the other hand is usually
given to people who have good credit history as well as high credit scores
Moreover, the rates tend to be lower in the case of loans that are
secured But you will need to look at other factors as well once you have
decided which loan type you will be going in for
4. Interest Rate: Even if this is one of the most important details governing
our decisions, you should not be blinded by faulty advertising Remember
that in the case of low interest rates, the payment duration will also be
longer So calculate if you will be saving anything If the interest rate is
reasonable compared to the loan term, then go ahead and sign those
papers Loan Term: A lot of loans have fixed terms, usually 15, 20, 25 or
at most 30 years Some lenders will enable you to change the term, if
they think you can pay the whole debt off within half the time
5. Check to see if early repayment is an option that is open to you Ask
your bank if they offer opportunities to pay them back earlier or later, and
how the change will affect your interest rate as well as monthly payments
Hidden Charges: Make sure you read the fine print before finalizing a
deal There might be charges you are not aware of, especially for home
equity mortgages Do not ignore the long list of penalties and fees that
you might be liable to pay Floating or Fixed Rates: If you availed of a
fixed rate loan, then you know exactly how much you will be paying every
month
6. Chances are your parents had a fixed rate loan on their first mortgage,
because it was the only one available to them during their time However,
floating rates soon emerged in the world of loans and mortgages This is
also called an adjustable or flexible loan in some cases, as the interest
rates vary annually or quarterly, depending on the terms of the loan In a
given year, you could run the risk of paying more interest or you could be
fortunate enough to pay a small amount
