Consumer Loans
Consumer loans are loans that people take out for a variety of reasons. There are loans for just about any reason including to buy homes, cars, or education. There are loans that are for all types of people with all types of credit. Some of these loans are better for people with good credit, and some are good for people with credit issues.
Types of Consumer Loans
Mortgage: a mortgage is a loan that you obtain to buy a home for yourself or to rent out. Mortgage loans can be up to millions of dollars and can have a payoff of as long as thirty years. There are also terms of ten, fifteen, twenty, or twenty-five years. The interest rates can be lower than other loans because they are longer terms, and they have collateral – the home – in case you default on the loan. You can obtain these loans from a brick-and-mortar building, or you can get one online from many lenders. Some of these loans can be backed by the government, and some are provided by private lenders.
Auto Loan: auto loans are loans to buy a vehicle for your transportation. These loans can be used for new cars or previously owned cars. They can also have low interest rates – even no interest in some cases. They can usually have a payoff period of up to six or seven years, however the typical time is five years. Since this is a secured loan, the lender can repossess your vehicle if you fail to pay on your loan. Many of these loans are secured at the car dealer itself, but you can also get these loans at any lender.
Education Loan: education loans are also called student loans and can be backed by the government, or they can be given by private lenders. If they are government backed, you will need to fill out a FAFSA, or Free Application for Federal Student Aid. This will help the government to find out which student aid that you will qualify for.
This application will also help to determine if you qualify for grants or scholarships. With government loans, you can get deferment and forbearance if you cannot immediately pay for your loan. If you have a private loan, you will need to begin paying it off immediately.
Personal Loan: a personal loan is one that you will get to use in any which way that you want to. Many people get these loans to pay for vacations, weddings, major appliance or furniture purchases, or to consolidate their bills. These loans can secured or unsecured depending on your credit history. If your loan is secured, the lender has a recourse if you fail to pay your loan. These loans will usually have a payoff of up to five years and they usually have a higher interest rate.
Credit Cards: credit cards are another type of loan; it is called a line-of-credit loan. You are given a credit limit and then you have a revolving balance that you will pay off a little at a time each month. These loans are not secured and the only recourse the bank or lender has when you default on it is to cut off your line-of-credit.
If you have a good credit history, you will have a lower interest rate, but credit cards usually have a higher rate than other loans. If you have a credit history that is not so good, you can apply for a secured card, or a credit builder card. These cards are ones that you will need to fund yourself, but they go on your credit history, if you pay on them monthly, you can build a positive history.
Best Mortgage Loans
There are many lenders that you can get mortgages from, some are online, and others are brick-and-mortar buildings that you can physically go to. This article will share some online solutions for you to consider. For some more information, you can also get some ideas of mortgage loans here: http://www.billigeforbrukslån.no/beste-forbrukslån/. They can provide you the information that you may need.
Chase Mortgage
Chase mortgage has one of the best ratings for any lender. They have competitive interest rates, loan programs for all buyers, and faster closing times. They have a program for those who have less money for a down payment and have lower credit scores. They also have programs for existing customers that will help with down payments and interest rates.
Flagstar Bank
Flagstar Bank is a good option for first time buyers with lower credit history. They have lower interest for these types of buyers. They also have many discount offers that help borrowers including discounts to people who work for companies that do business with Flagstar. They have branches in many states, and you can also apply online.
PNC Bank
PNC Bank has many programs that assist lower income people and people that have lower credit scores and poor credit history. They have an online experience that help borrowers to determine what they can afford and provide real time rate quotes and varying loan products.
PNC is available in all fifty states, and you can also apply completely online. You can do the whole process without leaving your home.
Bank of America
This bank has a program that has a low down payment of three percent and no mortgage insurance. You can save a lot of money with the lower interest rates, as well, as the low down payment and lack of mortgage insurance. You can apply for the loan online or in one of many brick-and-mortar buildings that are around the United States.
PenFed Credit Union
Although this is a credit union for members of the military, you do not need to be a member of the military to belong to the credit union. They just require you to give ten to fifteen dollars to a charity of their choice for you to join. They provide loans for people with all credit scores and have a special incentive of giving you credit up to twenty-five hundred dollars on your loan. They also offer a shorter closing time if that is what you need.
Rocket Mortgage
Rocket Mortgage is one of the largest online mortgage lenders. They offer a completely online experience and also offer service in all fifty states. They can offer you a mortgage loan that has a payoff period from eight years to twenty-nine years. They do require a credit score of at least 580 which can help those who have a lower credit score.
This is just a little information about consumer loans, especially some mortgage loans. You will need to do some research to see which of these loans would be best for you and your situation.