Tag Archives: pay off
Monthly Payment Loan – Almost Everyone Needs One
Almost everyone needs to get a monthly payment loan at some point in their life. Buying a home or car can cost so much money that saving up for the needed cash takes years and years. A monthly payment loan can allow someone to get what they want or need quickly and pay off the loan over time. In essence, a monthly payment loan allows you to get what you need now, and then save up for it through the monthly payments. The trade off is that you pay interest on the loan, so you pay a little more in the end to get what you need now instead of much later.
Different monthly payment loans come with different terms and rates, so it is important to shop around to try and find the best deal. You should check out many different banks and financial institutions to see which one offers the best monthly payment loan for you and your needs. One bank might offer a lower rate to your neighbor, but your credit history and amortization schedule needs might be different, so a different bank may offer you the best rate. This is why it is important to actually do the footwork and shop around yourself instead of using the bank or financial institution that someone else says gave them the best terms after they shopped around.
Interest rates, especially on mortgages, change over time depending on various trends. If you can wait for a few months, you should consider watching the rate trends and looking into the rates of past months. If the interest rates are abnormally high at the moment, you should wait for them to drop because getting your loan. Likewise, if they are abnormally low at the moment, you should try to get a loan or mortgage as soon as possible to capitalize on the low rates before they rise.
Obviously, your credit score has a large impact on your monthly payment loan terms and rates, so you should get copies of your credit reports from each of the three credit reporting agencies to check for mistakes. If there are any mistakes on your credit report, getting them fixed can make a huge positive impact on your credit score, and thus, your monthly payment loan terms and rates. It is a good idea to attain all three main credit reports because mistakes that show up on one may not show up on another. If you obtain your credit report from one or two of the three major agencies, you might not find any mistakes. However, the bank might get your credit report from the third agency, and that report may show credit information that the other two did not.
When you get a monthly payment loan, your amortization schedule is the month by month payment plan that you use to pay off the loan. The longer you take to pay off the monthly payment loan, the more extra money you pay in interest. However, higher monthly payments that pay off the monthly payment loan sooner make a larger impact on your monthly budget. You need to carefully consider your amortization schedule and look down the line to be sure you will be able to make your payments every month.
Why people refinance mortgage loans
First, you have to think about the refinancing plans and ideas/work arounds that mortgage lenders will throw at you in case you want to lower your rates. Lending companies wont give you something “good” without certain qualifications.
So, with that said the next thing you might want to do is really decided if you “need” to refinance your mortgage. A good number people think that refinancing is an easy task simply because they have a built up history with a company. They think hey I’ve spend x amount if years with you so you owe me this in return. Refinancing doesn’t always mean lower rates and people need to get this through their heads before putting all their eggs into one basket (it’s not for everyone)
Now, I’m not saying refinancing isn’t a good option it’s a great idea but it just depends on what type of mortgage you have. That alone will be the main factor that discerns whether or not refinancing is a good option for your personal situation.
There was a time when lending companies needed to do conduct a detailed background check on your properties before lowering your rates but now with the economy the way it is most companies are willing to work with you so they can have your business (take advantage of it).
So ask yourself something (or your spouse). Is it really time to refinance is this something we really need to do? What is your strategy what are you trying to do here?
Perfect example, do you want lower rates so that you can still cash out and pay off other debt or do you need just a basic refinancing plan?
Most common reasons why people want to refinance
1. Better Credit Rating
Most people can’t obtain low interest mortgage so they bear to suffer with elevated rates. There are those that are lucky and get lower rates even with bad credit
Traditionally people try to pay their loans back/on time in hopes of building their credit and this does work but sadly it doesn’t work fast enough for most. Not to mention most can’t afford but to pay the minimum amount due each month.
2. Lower Interest Rate (Pocket Money)
Some people want a better deal in the end they want to cash out in the end and use the access money for other things like paying off other debt, buying a new car…. Etc.
Experts say that getting home equity is the better option (in our current economy) because the rates are cheaper.
For instance, have a loan of $40,000 on a $75,000 home. You consult with your spouse or financial advisor and you come to a conclusion that a lower interest rate is the way to go. Which will allow you to allocate $7,000 to pay off your car loan (7k is just an example figure)
Now that you have a little understanding about the benefits of refinancing loans its time to sit and see where you stand financially and path a way for your future.