Figuring out where to get a loan with the best rates isn’t easy, but it’s still possible even after the credit crunch America has experienced in recent years. With a little research and persistence, it’s still possible to get a great personal loan. Many loans are still ridiculously high despite the Fed’s influence on rates that they hoped would trickle down to each and every loan type product.
It’s smart to know what determines interest rates so you can get a better deal when wondering where to get a personal loan. A little research will help a person learn how to get the best rates on the following:
1. Mortgages
2. Lines of credit
3. Home Equity Loans
4. Auto loans
5. Credit cards
6. Student and personal loans
About Mortgages
There are many things that affect mortgage rates, and of course there are several different types of rates, from fixed to adjustable. Fixed rates are always relative to the current state of the economy. They are also subject to investor expectations. They typically carry long-term interest rates through Treasury notes rather than short-term personal loans that are regulated by the Federal Reserve.
ARM or adjustable rate mortgages are affected by short-term rates. For those looking to find where to get personal loans at the best rates, they need to prepare a portfolio that shows stable income and an excellent credit rating. The best is a score of 740 or more. If they have a down payment that will help too, and the cash reserves on top of that makes them a prime borrower.
Of course, that doesn’t mean there aren’t great rates for those who don’t consider themselves “perfect” borrowers. Making a larger down payment or borrowing less money will help you get a personal loan, whether for a mortgage or another purpose, that is at a much lower rate.
Another way to lower rates when looking for personal loans is to pay for free origination up front, or even what are called discount points. This is simply a percentage of the loan amount that helps lower the interest rate. Of course, this means that one will pay more at closing if it is related to the mortgage.
How much these points reduce the mortgage or loan rate depends on the market at the time of the loan. It’s smart to pay points because it not only lowers the interest for the entire life of the loan, it also lowers your monthly payment. Consider how long you’ll own the home to determine if it’s a smart move. Most owners sell or refinance within 5 years of ownership, to give you an idea.
Home Equity Line of Credit
Many prefer to take advantage of a home equity loan rather than trying to get a loan elsewhere. In this case, the borrowers get the money immediately and in a lump sum. The loan is set at a fixed interest rate, allowing them to make the same payment every month for the life of the loan.
These types of personal loans are lines of credit that allow the borrower to withdraw money periodically when necessary. The interest rate may be different, depending on what is called the prime rate. The borrower may have the option to make interest-only payments for a specified period of time.
In any case, to get the best rate when shopping for personal loans, it’s best to be aware of your credit profile and get a loan when interest rates are at their lowest.
Competitive rates and flexible terms are just a click away, and you’ll have money from trusted lenders deposited directly into the account of your choice. Applications are free, then fees and loans depend on the person and the provider.
