Oct12

What to Look For in a Loan

Posted: October 12, 2017 by Ashley Dull

If there’s one thing to be said about the modern world of consumer credit, it’s that the product options are abundant. While this is great for consumers looking for the best deal, sometimes there is such a thing as too many options (a dilemma quite familiar to anyone who has had the pleasure of waiting 15 minutes for the person ahead of them in line to order coffee).

Even something as seemingly simple as taking out a loan can turn into a series of decisions that require not only a bit of thought, but a bit of knowledge, as well. For instance, each type of loan, be it a mortgage, auto, student, or personal loan, has its own variations. Do you want a conventional mortgage or an FHA-backed loan? Should you get federally financed student loans, or private ones?

Beyond the peculiarities inherent in each type of loan, the majority of installment loans operate in the same general fashion, and each will be influenced by the same basic factors. Namely, your loan terms will primarily consist of your principal (how much you’re borrowing), the interest rate, often given as an annual percentage rate (APR), the loan length — how many months you’ll make payments — and the resulting monthly payment.

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