Types of Loans

All loans can be placed into two major categories:                                                

1. Installment Loans                                                                                          

In this type of loan all the money is borrowed upfront and you make fixed payment in installments spread over a period of time. The interest rate for the loan and the repayment period are set prior to the loan closing. Installment loans cab be secured or unsecured. An example of this type of loan is a fixed rate 30-year mortgage loan. Another example would be a 3-year car loan. The payments are fixed and spread over a definite period of time. 

2. Lines of Credit

A line of credit is a revolving credit that allows you to draw any amount that you need up to the limit set by your lender. As you repay the money you borrowed, that amount becomes available to you again to borrow. The interest rate on a line of credit may be fixed or variable and may also be secured or unsecured.

Secured loans are loans secured on something of value, usually called a collateral. Examples are car loans, mortgages, home equity loans. If you default on the repayment the lender can take possession of the collateral in order to recoup his money.

Unsecured loans are usually expensive since it involves a lot of risk to the lender. Here there is no collateral. The only guarantee the lender has for repayment of the loan is your word.

Car Loans

If you are shopping around to buy a car the last place to look for financing is the car dealership. Try first to obtain your car loan from your bank or even better still obtain an e-loan. For a very good car loan rate why don't you apply for a car loan today!

RoadLoans - The quick and easy way to finance your auto loan.

Low-Rate & Home Equity Loans

The ultimate American dream is to own your home and banks and other mortgage and finance companies make this dream a reality for many families. Since this may just be the biggest investment in your lifetime, it is important that you choose your mortgage company carefully. Buying your own home usually takes a big chunk out of your savings, since you would need a down payment for the home. These days, however, you can buy a home with no money down and with a relatively low interest rate.

A home equity line may be a very useful source of credit. Initially, at least, it can provide you with a large amount of cash at a relatively low interest rate. With it, there may also be some tax advantages unavailable with other kinds of loans (verify the details with your tax adviser). It is important to exercise caution so that you don't over-stretch your ability to repay your loans. You could loose your home if you are unable to repay the home equity loan, since this is a lien on your house. There are financial calculators available that would allow you to fairly estimate what you repayment obligations would be.