The Benefits of Home Equity Calculators

People take different types of loan for different purposes. It could be for education, for auto loan, to buy a house, home improvements and renovations or to refinance. For all this purpose a home equity calculator is the most useful. They help to find out the borrowers eligibility, various interest rate and the monthly payment as per the borrowers capacity. It also helps to compare between different other home equity loans available.

Before choosing a particular loan it is very essential to find out the exact kind of loan which will cater to the borrowers needs. This is particularly very important if the borrower is going in for a long term loan. In such a case it is always better to use the home equity calculator.

These calculators help determine the type of loan best suited to the borrower as per his financial background and payment capacity. There are two types of loans one is the variable rate loan and the other is fixed rate loan. A borrower is free to choose the one which is most comfortable. After selecting the most suitable type of loan the home equity calculator helps to determine the monthly amount payable. It also helps to find out the incomes and savings every month. More efficient calculators can even make comparisons between various institutions offering loans this is very beneficial for the borrower to make a good decision even in refinancing his present debts.

They are easily available on the internet. The simple and easy calculator can give details of the number of installments that are payable as per your capacity, the monthly payments, and the term or period of the loan. Another useful benefit of using a calculator is it also helps to calculate the tax savings of the borrower. The home equity calculator helps to determine the time taken to break even on the final cost. It helps to give a picture of quick repayments of the loan. Some calculators provide investment plan, tax advice and also helps to find out capital gains.

An important point to be kept in mind while using these calculators, is the APR or the annual percentage rate. This is computed annually and this could vary from every financial institution. Some institutions included their charges in the APR such the documentation charges, processing charges, insurance and application charges. The calculator’s values therefore may not be the exact and final value as it could differ according to various lenders.

Unsecured Loans – A Little Money Goes a Long Way

Unsecured loan or cash advance is a small loan which you can take any time. It is one of the two most popular options for short-term lending that people can avail of, the other one being payday loans. You don’t need a credit worthiness tag to apply for an unsecured loan. Your bank will advance you the cash or a lending agency will, sometimes on the with a guarantor standing on your behalf in case of default. Such loans are repaid in monthly instalments.

They carry very high interest rates, especially payday loans. Unsecured loans are not so bad, with APR less than 50%. The amount lent varies from lender to lender, but doesn’t go more than a few thousand pounds. Unsecured loans are the last to be repaid, only after any other charges on the account are paid. Unsecured loans are not secured by any asset like a home or car. It is based on the assessment of a panel of lenders who will help you to find the best loan for your requirement. Companies offer a range of loans like this, secured or unsecured, depending on your requirement.

Different lenders charge different APRs, which they must display on their advertisements as representative APRs, which include all other charges with the interest amount. They charge differently based on customer profiles, their credit rating and the lender’s policy of course. Hence APRs can range from single digits to the 90s.

Some FAQs on Unsecured Loans…

Can I face legal action if I do not repay a loan?

Unsecured loans are perfectly legal and you can face legal action if you don’t repay, even though there are no guarantors or assets linked to your loan

What are the advantages and disadvantages of unsecured loans?

The advantages are that they are easy to get should you need a large amount of cash in a hurry. There are no questions asked and payment terms are flexible from one to five years. There is no pre-payment penalty, and some loans give a repayment holiday period for the first few months after the loan is taken.

The main disadvantage is that it is an expensive loan to pay back.

Who is the best candidate for an unsecured loan?

Though it is not considered a critical factor, a good credit history makes for a good candidate for unsecured loans. If it is a bank providing this loan, an account holder is a good candidate. A longtime resident of the place with a secure job is also a good candidate. So while granting the loans, the lenders consider those candidates as best candidates who can repay their loans in a short period of time because of their secure job and impeccable credit history.

Is the interest (APR) flexible? How is it calculated?

The interest rate on an unsecured loan is calculated depending on the following factors:

1. The amount borrowed – the interest rate is inversely proportional to the amount borrowed usually. If large amount is taken as loan, then the interest rate will be less while the interest rate will be high for a small amount of loan

2. The term of the loan – long term loans have higher rates while short term loans which can be repaid within a short period of time has low rates of interest

3. The borrower’s credit history – a good credit history will get you lower rates. But if your credit history is not impeccable or you had defaulted in past then you will have to pay high rates of interest.

What is the maximum term for such loans?

The maximum term of unsecured loans is usually five years.

Difference Between Mortgage Rate and APR

As far as the APR is concerned, you will definitely find out that it is a bit different from the mortgage rate. Actually the abbreviation APR stands for annual percentage rate and with the help of this you can find the true cost of the loan. Now as far as the mortgage rates are concerned you will definitely find out that they are used to find out the interest that accrues on the mortgage. It is also called the interest rate as well.

As far as the APR is concerned, it definitely describes the interest rate for the whole year. It can be applied on various things. Some of them are loan, mortgage as well as credit card. There are many more things on which the APR is being applied. There are generally two types of APR. They are the nominal APR as well as the effective APR.

As far as the nominal APR is concerned, it is definitely the simple interest. All the calculations are based on the mathematical concept of the simple interest. However as far as the effective APR is concerned, you will definitely find out that it is based on the concepts like compound interest. You can computer effective APR in three ways. For example you can calculate by compounding the interest rates for each year. However you will not have to consider the fees.

As far as the origination fees are concerned they are added to the balance. The whole loan is calculated on the basis of the compound interest. This is the second methods. You will find out that there are two effective APRs and you will definitely learn how to calculate them quite easily as well. Suppose you have taken the loan of 100$ at 5% interest rate and 10% fee. If you will neglect the fee then your APR will be 79% which is the result of the simple calculation. However when you will add the fee as well then the APR will become 435%.

As far as the mortgage rates are concerned, they are the percentage of the principal that are being paid as the fees for some fixed period of time. You can call it as interest rates as well as both of them are quite same as well.

Actually the mortgage rate is meant for the purpose of compensation. Actually it marks the compensation to the lender who might have earned something from the loan value if he would have not given the loan. Thus this is the basic difference between the APR and the mortgage rate.

The Best Car Insurance Rates

If your car insurance is due for renewal and you are considering buying another policy then this article will provide you with important facts that you should know about. Car insurance policies are getting increasingly expensive and you should do all that you can to reduce your costs. How much you have to pay for your car insurance is dictated by a variety of factors as they apply to you and your vehicle.

In this article we will examine coverage limits, your age, gender and marital status, your location and insuring other household members. All of these factors will have a great influence on how much you will have to pay for your policy.

Coverage limits are generally dictated by the price that you are willing to pay for your insurance. A higher level of coverage will generally result in higher premiums. The best way to find a good value policy is to comparison shop. Nowadays it is generally accepted that the best way to do this is by using a car insurance comparison website.

Your age, gender and marital status will have a great effect on the auto insurance rates that you are offered. Insurers rate drivers using a variety of criteria, if you are a young single male driver you will usually have to pay higher rates. If you are a middle-aged female married driver then your rates will be lower. Insurers calculate the best car insurance rates for you by comparing levels of risk. Those groups which are statistically more likely to be involved in an accident have to pay correspondingly higher rates.

Location plays an important part in deciding how much your premiums will cost. Drivers who live in an urban environment will usually pay more than those from a rural area. This is because drivers who live in cities and heavily populated areas are more likely to be involved in an accident, or to have their car stolen or vandalized. Insurers generally offer better rates if you’re able to demonstrate that you keep your vehicle in a garage at night. You may also be able to improve the security arrangements of your automobile by fitting an alarm, immobilizer and steering wheel lock.

Insuring other household members will have an influence on the cost of your policy and the best car insurance rates that you offered. If you have teenage family members living with you and they are added to your policy, then your costs will increase. This may still work out cheaper than if your teenage driver were to have a separate policy in their own name.

In conclusion, there are a variety of different factors which can affect your ability to be offered the best insurance rates. Some of these are coverage limits, how old you are, whether you are male or female and whether you are married or single. Your rates will also be affected by the area where you live and whether other household members are included in your policy.