Finding money lendersWritten by Jakob Jelling
There are many situations in life that will require you to take out loans. Finding right money lenders will allow you to get loans that are best suited to your particular need.First place to turn to in an emergency is your own family. Maybe they can help you out in emergency cases. Bank loans are a safe and secure way to borrow money. You can find banks that offer various types of loans such as auto loans, home loans and student loans. Many people want to start their own small business but back away since they do not have start-up capital. Business loans are useful in helping such people start their own business. When starting your business, you should have a business plan ready, and then you can go out searching for small business money lenders. You can go to commercial lenders, banks or venture capitalists, give them your best sales pitch of your business idea and convince them of your future success. Cash advance money lenders can help you get money in emergency situations. If you have run out of money before end of month, and need some quick cash to make sure your electricity or heat is not turned off, cash advance money lenders can help. They often do not carry out background checks and so it doesn’t matter if you have bad credit. However these loans are meant to be only for short term and if you do not pay them off on time, they can be very damaging.
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Written by Bill Teddings
Getting a mortgage is easier nowadays than it has ever been, although there are still one or two pointers you should always bear in mind when applying for a loan. Firstly, keep an eye on general interest rates - what you need to remember is that simply having a low rate does NOT make a bigger loan more 'affordable', you still have to pay off money somehow at end of loan, and in these low-inflation times, a big loan now will still be a big loan in 20 years time! This is why 'interest only' loans (loans that do not require you to repay any of capital each month) are maybe not such a great idea anymore.Interest rates tend to follow an inverse relationship to Wall street - when stock market is rising, interest rates tend to fall and vice versa. This is because investors are always looking for best return on their investments. If you keep an eye on Fed rate, and rates offered by big Savings and Loans, you won't go far wrong. Key to understanding interest rates is concept of 'APR' or 'Annual Percentage Rate'. This is a figure used to compare loans from different lenders on a 'fair' basis, because most loans nowadays have different conditions and extras attached to them that have a direct monetary value. In USA and elsewhere, mortgage companies must disclose APR when they advertise a loan rate. This shows true cost of loan to borrower, expressed simply as an effective yearly rate. It basically stops lenders from hiding fees and front-loaded costs behind small print of what appears to be a low interest rate. Here's a simple example. Say you borrow $100 for a year at 5% interest (i.e. you will owe $105 at end of year). Say you also have to pay a $5 'introduction' fee, and your total cost to borrow money will then be $10. What this means is that APR is actually 10%, even though advert that drew you to loan in first place may have legitimately quoted '5%' elsewhere. The APR, however, must admit that real rate is equivalent to 10%.
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