The 3Rs in Finding Low Interest Loans

2007-03-08 10:33:40

( Financial )



The solution that everybody thinks of when faced with money problems is to get a loan or a mortgage. Nowadays, it is easy to find a financial institution that will be more than willing to provide you a loan or a mortgage. However, most of the loans available to us are usually high interest loans. It would usually take more time and effort to find low interest loans. Most of us, I am sure, will just take on the easy route and accept whatever is offered and will not even bother finding other mortgage loan proposals with lower interest rates.

For those who are willing to take on a more arduous route just to get a low interest loan, however, here are the 3Rs that will help you achieve your goal.

Review

The first thing you have to do, if you intend to apply for a loan, is to do a through market and economic review. You have to bear in mind that mortgage interest rates are affected by national and local economic conditions. Thus, it is wise to allocate time in studying national and local interest rates, and government policies that might affect the economy in the country or locality you live in. Take time to read financial news to have an idea if the rates are likely to fall or increase in the immediate future. The knowledge you will get from the research will help you determine when is the right time for you to apply for a mortgage or a loan. If rates are likely to go up in the future, you will most probably not get a low interest mortgage. On the contrary, if rates are likely to decline, there is a big chance that you will get a loan with lower interest.

Research

Many lenders consider credit history in determining what mortgage interest rate is applicable to you. However, there are quite a few banks and financial companies that are willing to give lower interest rates even to those who have poor credit rating. In order to find such loan providers, however, you have to do thorough research. Shop around and get as many mortgage quotes as possible.

Resource

Lenders look into the value of the collateral to help them decide the interest rate of the mortgage they will offer you. The higher the value of your resource, or the collateral you will use during your loan application, the bigger is your chance of securing a low interest loan. A marketable real estate with high value will not only help you get a low interest mortgage, but will also help you obtain the loan amount you are asking for.


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