Low secured loan rates – are they possible?

In everyone’s life may come a moment when a loan is needed. For low amounts things may be simpler, by applying for an easy-to-get payday loan, or cash-advance loan. If the amount obtained does not handle the issues, you can go for an unsecured loan.
But what about those times when a $5000 or a $10 000 personal loan are just not enough? The remaining solution is a secured bank loan. This loan encourages the lender in offering greater amounts of money through the security that the borrower brings in: a property of his – maybe his house, a car, a boat. The loan amount usually goes up to 75% of the security’s value.

What are interest rates

Lending money is a business like any other business. Profit is made by giving away an amount of money as a loan, and charging a percentage of the money loaned. The borrower must return the original amount plus the agreed percentage.
The percentage carries the name of interest rate. The rates may not be the only money charged by the lender. Sometimes he will charge various fees :loan administration fee, early repayment fee, originating fee. All this fees pus the interest rates are known as APR- annual percentage rate. This is a figure that adds up the expenses charged by the lender over an year for a loan.

Secured loan rates

When it comes to secured loans, you must know the following: this type of loan is a low-risk operation for the lender. Hence you are in a position to negotiate for your secured loan rates. Lenders will give always lower rates on this loan, as opposed to an unsecured one, but you should not settle with the original offer and go for more. After all, you are the one putting at risk his asset, so why not make the best of it. A good credit rating might help some more, if that is the case.

Short guidelines

Payments will be made monthly, so be sure to choose rates that leave you with money for other expenses, or even savings, at the end of the month. Try to stay ahead with 3 or 4 months payments. Repayment period is long, so prepare a back-up plan in case of unfortunate events, like insurance. Because you have a property a stake, you might consider spending a little money to get a quote from a finance expert.

You can use our loan calculator to have an estimate of the monthly payments for a loan with your desired characteristics.

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