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Loan Rates Today

Written By: admin - Feb• 12•13

What Are Typical Loan Rates Today?

The loan rates of today probably aren’t going to be the rates of tomorrow, meaning that rates are constantly dynamic. It also depends on what kind of loan you are seeking as well.

Mortage loan rates:

Mortgage loan rates are among the lowest rates available. This is due to the fact that most people, given the choice, will not risk defaulting on their home loan and losing their house.

When searching for the best rates, it’s good to keep in mind that a 30 year mortgage is the “safest” of the loans. This is because the payment is lower than that of a 15 year mortgage loan. If you were to encounter unexpected financial hardships, having the 30 year would allow your payments to remain small, thus lowering the risk of losing the house.

The lowest rate that you’ll probably ever see on a mortgage is called an Adjustable Rate Mortgage, or ARM. These are usually interest only loans that come with very low interest rates. Lots of people use these loans in real estate boom periods. This is because while their payments are as low as possible, they earn equity in the home as housing prices continue to rise.

School loan rates:

School loan rates can vary depending on the type of loan, the lender, whether or not you use a special program, etc. For instance, in school rates can be very low, around 3 percent currently, but if you’re out of school, your interest rate could easily be double that, or more. If you can’t participate in the Stafford loan, there are specialized home equity loans that are made just for school expenses as well. More information on these types of loans is covered in detail more HERE.

Auto loans:

Auto loans are generally on the easy side to get. This is because the loan is secured by a lien on the automobile. Right now, the average percentage on an auto loan is around 3 percent. However, if you look hard enough, and your credit is good, you’ll be able to find them at just over 1 percent!

One thing to keep in mind about financing a vehicle is that you can often get approved for a larger loan simply by increasing your down payment. There are many small “buy here, pay here” dealerships in place today that actually will guarantee your approval. Just keep in mind that the way they can guarantee it is by increasing your down payment, thus lowering their risk in the process.

What about borrowing against home equity?

Home equity loans are sitting at about a 5 percent rate right now. This makes them a very attractive way to borrow, depending on your situation. We cover this type of opportunity in more detail HERE.

Personal loan rates:

Personal loan rates can vary greatly. This is because the majority of these loans are unsecured, and approval is based more heavily on the consumer’s credit history than anything else. My advice on this is to shop around. Often the credit unions will be the better choice for something like this. You can also seek to secure your borrowing by putting up an asset as collateral on your loan. You can find out more about these things HERE.

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