Used Car Loans Interest Rates

Used car  loans  are very useful if you can’t quite afford a brand new car, and are seeking finance for something more within your budget. Many used cars are excellent buys, particularly those less than a year old where depreciation on the new price has occurred, and you can secure yourself a next to new car for significantly less than the new price.

Finance available in the form of used car  loans  can be either unsecured or secured, although you won’t generally get a secured  loan  unless your car has been purchased from a dealer and is less than 5 years old. However, you can still get decent rates on unsecured  loans , and if you use a car  loan  calculator to work out what your repayments will be, you will be able to determine what price you can pay for your car, based upon how much you can afford in monthly repayments.

When seeking a used car you should make sure that it is in good condition, particularly the bodywork. Engines and parts can be replaced but not the bodywork, and if that is rusted or holed, than it is going to be costly to maintain. Sooner or later you will have a lot of expensive welding work to pay for. Make sure you take the potential cost of maintenance and repairs into account when calculating your affordable payments.

Another aspect of owning a used car to take into account when considering a used car  loan  is that of insurance. Unless your car is less than two or three years old it might not be worth going comprehensive, and the lower your insurance costs, the more you will be able to afford for your car  loan . What you should do then, is to check out the used car that has caught your eye, find out how much it will cost to insure at the level you want, and make sure that it is not in immediate need of repair.

Then figure out your maximum monthly expenditure, deduct insurance and estimated repair costs and enter that into a car  loan  calculator long with the price of the car and the current rate of interest. That will tell you over how many months you will have to pay the  loan .

What you do then is to find a lender that will lend you that amount of money over the period that you need to borrow it. If the stated interest rate is higher, then the period will be longer, and if the rate is lower, such as for a secured  loan , then the period of repayment will be less.

It is a fact that unsecured  loans  demand a higher rate of interest, since secured  loans  have the car as security, which will be taken from you if you are unable to pay. An unsecured  loan  is more of a risk to the lender, although they have other ways of getting their money back. It does, however, demand a higher rate of interest, and it is of extreme importance that you can pay that plus the principal amount borrowed for your used car  loan .

Hence the importance of using a car  loan  calculator to calculate the monthly payments you will have to make. However, you can also use it to find out the total cost of your  loan . This could be useful if you have the cash to pay for the car, but would perhaps rather just pay it up and keep your cash in your savings account building up interest. When you calculate how much the  loan  was costing as opposed to the interest you would earn keeping your money in the bank, it might shock you.

Knowing the total cost of borrowing is very useful, particularly for used car  loans  where you might be paying a higher interest rate than for a secured new car  loan . However, if you make sure that the interest rate stays the same for the full term of the car  loan , then you won’t have any unbudgeted increases that can cause problems for some people. A fixed interest rate should be the #1 item on your used car  loan  shopping list since it is the best security you have.

Your car  loan  company wants their security, so you make sure that you get yours! You might also be able to negotiate the frequency of repayments. If you get paid weekly it would likely suit you best to make weekly payments, since it is easy to forget to save the money for the  loan  for the end of each month.

Used car  loans  are available at good rates, but if you do your homework and calculate your payments using a car  loan  calculator, you will be able to avoid potential problems with your repayments being higher than you expected. Always enter into a used car  loan  agreement with your eyes wide open.

Instant Student Loans – Fulfill Your Educational Requirements

 Loans  for student are very important for today’s college going generation as the education has become very costly. Now you don’t have to wait for too long just to entail funds to finance your education. Students can easily accomplish their dreams without facing any financial constraints. Realize your dreams with instant  loans  quickly before it’s too late!

A student needs monetary support to cope up with various expenses during his education. There are innumerable expenses that have to be met on time or otherwise create a pile that becomes more difficult to manage. With help of instant student  loans  you can cover such expenses. You can pay electricity bills, accommodation, food expense, traveling expense, library fee and buy books.

The  loan  amount sanctioned depends on the course that you want to apply for. You can apply for graduate, post graduate, regular, part time and professional courses according to your choice. The funds will be made available without delay.

Instant  loans  are available in secured and unsecured form. Secured  loans  demand collateral. You can place any of your valuable assets as security. However unsecured  loans  are free from such obligations but offer a smaller  loan  amount. The interest rate of these  loans  is low and affordable so that you don’t find it difficult to repay.

Repayment term is flexible and easier to comply with. Sometimes students are allowed a repayment break of 6-9 months. During that time you can search for suitable job and start repayment as soon as you find a job.

Instant  loans  can be applied online. The online process is much faster and free from hassles. Just fill up a simple application form and get started!

Even bad credit holders can access instant student  loans . These are open to all types of borrowers. If you are facing adverse credit like CCJs, IVA, late payments, arrears, defaults and bankruptcy then still you are eligible. So just don’t miss the opportunity!

How to Keep Student Loans Under Control

Here’s a new one. One of our neighbor’s daughters (Annie) is about to head off to a college that believes that student  loans  are bad, so they don’t offer them!!! While I can cheer that college on for their decision, it unfortunately forces those students who need  loans , to obtain them from private channels, rather than from FedLoans. This poses a significant risk for the college students for several reasons. I’ll talk about private  loans  first.

Private Student  Loans  (PSL)

According to Student  Loan  Borrower Assistance (dot) org, “In theory, private student  loans  are used to fill the gap between available federal aid, and what students and families can afford to pay out-of-pocket for college costs. In practice, unfortunately, many borrowers take out these higher cost  loans  without first exhausting their federal student assistance options.” PSLs lack the more affordable, fixed rates, and flexible repayment options that federal  loans  have. Prospective borrowers should exhaust federal grant and  loan  options before considering a private student  loan .

So, Annie’s college is denying their students with an affordable means of obtaining financing for college by not providing federal student aid options for their students. PSLs should only be taken as a LAST RESORT, only after all other options for scholarships, grants, and federal  loans  are taken.

Interest will start to accrue the moment you take these  loans  out; there is no “in school” deferment on interest for private  loans . So, the amount you borrow today, will grow while you’re in school and you’ll owe much more after graduation, if you don’t start repayment immediately. So many folks have a sticker shock after graduation when they get the bill with all that amortized interest tacked on to these pesky  loans .

The good news about PSLs is that outside of bankruptcy, these  loans  are treated like any other credit card debt. This means that the creditors have a limited amount of time in which they can collect on the debt, also known as a Statute of Limitations (SOL). Each state has its own SOL laws, in California, creditors have Four (4) years to collect on a debt upon a written contract; and Six (6) years, if the contract is a Promissory Note.

Federal Student  Loans  (FSL)

There are several types of federal student  loans , depending upon the type of education, school, and options available based on credit worthiness. The most important part to understand is when does the interest begin to accrue.

Subsidized SLs are the absolute BEST option for your education financing because these  loans  are (1) interest FREE while you’re in school; and (2) repayment does not begin until Six (6) months after you last attended school. Unsubsidized SLs, on the other hand, begin to accrue interest while in school, similar to the private  loans .

By now you’ve probably heard about the various types of repayment programs for SLs. However, payment plans, like graduated, extended, and income based or income contingent repayment plan are only available for federal student  loans , not private.

Keep Student  Loans  Under Control by:

Choose the direction of your life first and determine whether you even need a college degree to achieve your goals. Some of histories great leaders and achievers are college dropouts!

1. Exhaust all other student aid resources such as scholarships, grants, education savings plans (529 savings) first.

2. WORK! Your parents, and myself included, likely worked a job while attending college. My husband took no  loans  for his education and worked several jobs during the summer months to save for his next year’s tuition. Hard work always pays off and you might as well get used to working hard for what you want.

3. If you must take out a student  loan , take SUBSIDIZED federal student  loans  first. Remember that these  loans  are interest free during school, and take six months after graduation before they become due. Next, take a federal unsubsidized, then private  loans . ONLY BORROW WHAT YOU NEED, NOT THE MAXIMUM OFFERED.

4. After graduation, you’ll have that six month grace period to consolidate your federal student  loans  and determine what payment plan you can afford. You cannot turn a private student  loan  into a federal student  loan  EVER, and why would you after the distinctions made above? ProTip: You can consolidate these  loans  on your own and don’t need to hire anyone to help. You have a college degree, figure it out. These companies did not exist “back in my day!”

I’m starting to see the younger generation coming into my office for consultations on student  loans  because they over indulged on credit and enjoyed their college years with nothing to show for it, but unemployment and mountains of debt!

Jumbo Loans – How It Works

A jumbo  loan  is a type of mortgage in US. The  loan  sum is above the industry-set definition of straight complaint  loan  limits. These standards were designed by Fannie Mae and Freddie Mac, two biggest secondary market lenders. These types of  loans  are usually offered by the creditor to those debtors who provide warehouse financing for mortgage lenders. The  loan  amount might differ from country to the country. It usually applies when the agency Fannie Man and Freddie Mac limits don’t cover the complete mortgage amount.

Fannie Mae (FNMA) and Freddie Mac (FHLMC) are large agencies that acquire the mass of housing mortgages in the U.S. Then they set the utmost limit for an individual lender who will pay for a mortgage. Insurance companies and banks then come up and get this opportunity with highest mortgage amounts going to the $1 million or $2 million range. A  loan  worth of $650,000 is known as super jumbo. The average interest rates on jumbo  loans  are usually higher than another mortgage, also it may diverge on mortgage sum and property types.

On February 13, 2008, President George W. Bush signed an economic incentive package that increased the maximum limit of  loan  from $650,000 to $729,750 until December 31, 2008. The maximum for any area would be the greater of (1) the 2008 compliant  loan  limit ($417,000); or (2) 125% of the area medium house price, but no more than 175% of the 2008 compliant  loan  limit ($729,750, which is 175% of $417,000).

Although jumbo  loans  is higher in worth but alongside these are more uncertain about creditors, because in case of defaults it’s harder to recover the  loan  amount. The higher the  loan  amount will be, the more vulnerable it will be. To be on the safe side, creditors ask for heavy down payments from debtors seeking jumbo  loans . Jumbo residence prices can be more biased and are not easily put up for sale to an ordinary debtor. Therefore, many creditors may require two reviews on a jumbo mortgage  loan .

Interest rates on jumbo  loans  are higher than other  loans , because these are high risk  loans . The distinction between two  loans  usually depends upon the prevailing market rate. Normally, the difference changes between 0.25 and 0.5%, at times of high depositor concern, such as August 2007, can also increase one and half fraction points.

Jumbo  loans  is increasing with the increase in property rates. The consumers of jumbo  loans  are increasing day by day, so this  loan  option now is no more just for elite class residents.

Fresh  loan  programs are offered, which are increasing the jumbo  loan  percentage. Because of this increase in current time mortgage  loans  are requiring more in city and nearby areas. These new mortgages are either a 40- or even 50-year paying back, or an interest-only option. These long payback time facilities the debtor with a great deal, which will result in the increase in monthly savings. Higher the payback period is, the more the lender or bank will gain.

If you are considering buying a new home then 80/20 & 80/15 jumbo  loan  is a right option for you. Previously, 20% down payment was only subjected to purchase private mortgage insurance (PMI), jumbo  loan  seekers were paying high interest of above 80% for LTV  loans .

With the amendments in the jumbo  loans  program, a debtor now can borrow 80% of  loan  without purchasing private mortgage insurance (PMI). Along with that he can take another  loan  with higher rate. He can hedge the risk at a very low insurance rate.

Recently, many creditors are moving away from 80/20 jumbo  loans . They are now offering lender paid mortgage insurance (LPMI) options to merge PMI with interest rates. If the debtor is now taking higher interest rate, he can avoid PMI even with just 5-15% down payment. With this option, overall interest for the debtor might increase, but it will decrease the monthly payments. It depends upon debtors, to some people this option might be suitable.