Tag Archives: fixed
Long term loans: Quick cash for long term needs
Long term loans are specially meant to help out people fulfil their long term needs. Since the living standard of people is rising day-by-day, their expenses are also increasing. But, the same is not for their monthly salary. They get a fixed monthly income and they have to manage all their expenses throughout the month in just that fixed monthly income. This is sometimes troublesome as it becomes impossible to satisfy all the monthly expenses in just a particular fixed monthly income. Therefore, one can opt for long term loans which help people satisfy all their long term needs without any trouble.
Long term loans are of two types, namely secured and unsecured. In the secured loans, the borrowers are required to place any of their valuable assets as security against the loan which thus helps them to get better terms and conditions like lower interest rat and larger loan amount. The loan amount for these loans ranges from $5000 to &75000 and have a repayment term up to 25 years. These loans are the best suitable option for those borrowers who can afford a valuable asset of their own as collateral against the loan. In the unsecured loans, the borrowers are not required to place any of their valuable assets as security against the loan. Thus, those borrowers who cannot afford a valuable asset of their own, this loan option is best for them. The loan amount for these loans ranges from $5000 to &25000 and the loan repayment term ranges from 1 to 10 years. The borrowers must satisfy some conditions before applying for these loans like he should be 18 years old or above, should be a reliable citizen of UK, should have an active bank account for the transactions to take place and should have a regular monthly income not less than $1000. The borrowers who suffer from their bad credit status are no more required to worry about their poor credit rating as these loans do not conduct credit check. Thus, all the borrowers who have bad credit score like missed payments, late payments, arrears, CCJs, insolvency, etc. can also apply for these loans without any hesitation as they wont be denied for the loan approval or troubled-up in any other way.
The borrowers can search for a suitable deal online as there are so many lenders there who offer various deals. The borrowers can search through the internet and look out for a deal of their choice. They can compare the offers of different lenders and little negotiation can let them grab the best deal ever. The various advantages associated with online searching are like a lot of time of borrowers is saved, they are not required to go through any kind of botheration as they can apply for their respective loan from the very comfort of their own home and these loans approval procedures are very quick due to the absence of the documentation-work. The borrowers have to fill an online application form with some of the personal details and then send it to the lender. The loan amount will be transferred to the borrowers account within few business hours.
Know Your Loan Options before Applying (Page 1 of 2)
All loan options are not the same; there are huge differences in them with respect to the options they provide. Sometimes with all these features it becomes very difficult to choose the loan option that could be ideal for you. In order to make the process of deciding which loan to take, let us first know what the different types of loans are.
1. Fixed Rate Mortgage Loans
These are the most popular types of loans available. With these loans, the mortgage rates are fixed throughout the life of the loan. Even within fixed mortgage loans, there are different kinds according to their tenures:-
a) 30-year Fixed Rate Loans: These loans are preferred by people who wish to stay in their houses for longer periods of time. Since the repayment is spread over to a period of thirty years, the amount paid back each month is low, which allows the family to have some liquidity in hand. However, the borrower will end up paying more in the long run because of the more interest paid.
b) 15-year Fixed Rate Loans: The shorter period makes it possible for the house to become the borrowers sooner, but he/she would have to make much higher monthly payments. The interest rate would also be half of that on the 30-year loan.
c) Biweekly Loans: With these loans, the payments are to be made every fortnight instead of every month. They are generally given on 30-year loans. Due to the excess payments made, the loans get over in something like 23 years. Also the loan builds up the equity faster. But some people might find the frequency of the payments too much to keep up with.
2. Adjustable Rate Mortgage Loans
With adjustable rate mortgage loans, the rates of interest are subjected to ups and downs as per mortgage trends. Generally these loans begin with lower rates of interest, and they could build up over time. The advantage with these loans is that the rates of interest in the beginning could be lower since the borrower would lock in a low rate of interest. But the rates could go higher at any time and then the borrower would have to make highly monthly payments.
There are some other aspects to home loans that must be known well in advance. Let us see these options.
1. Hybrid and Convertible ARM These loans provide the borrower with the ability to switch from a fixed rate of interest to an adjustable rate, or from an adjustable rate of interest to a fixed rate. Hence the loans become flexible. Naturally it makes sense to convert with these loans only if the rates are lower than with the option you are currently using.
2. Interest Only Loans In these loans, the borrower is supposed to make only the payments on the interest month after month, but will have to pay lump sums on the principal periodically. Interest only loans are those for people who work with lower salaries but get huge bonuses at the end of the year. This makes it possible for the borrower to get higher loans and keep more money in his/her pocket for all year round. But the disadvantage is that these loans do not make any payments on the home all through the year.