![]() ![]() If a payment is skipped for a variable rate loan, the unpaid accrued interest as well as the interest on the part of the principal that went to payment of the missed Loan Protector premium will be added to the loan principal balance (‘’Combined Amount’’) thus increasing the principal amount outstanding on your loan. If a payment is skipped for a fixed rate loan, interest will continue to accrue and will be collected when the next payment resumes. This means less of the next payment will be used to reduce the principal amount of your Loan. If you skip a payment and your Loan is protected with Loan Protector Insurance, the premium (for the period of the skipped payment) will be collected from your next regular payment. Skipping a payment may result in extending the amortization period of the loan. In order to be eligible to skip a payment, loan payments must be up to date and in good standing. Because getting a good deal is about more than just a low interest rate. When you're looking at your loan options, look at all the factors that impact how much you'll pay to borrow money. Some lenders will charge steep fees or penalties for missed or late payments. This will help you determine the best option for you when comparing your financing options.Īlso, find out if there are any hidden penalties. ![]() These might not always be stated clearly up front. Ask questions to determine whether there are any extra administrative fees or financing charges. Make a point of finding out how much interest you will be paying over the total life of the loan. It's also important to look at how interest is calculated. And because interest is charged over the full term of a loan, even if you've got a lower rate, you may end up paying more in interest because you're paying for a longer time. Some low rate offers are based on longer re-payment periods. The first thing to look at is the term of the loan - that is, how long it's for. So before you get drawn in by the promise of a great low rate, there are a few things you need to take into consideration. But these deals do require extra scrutiny. Some offer extra low interest rates, buy now/ pay later options, or the ability to pay for a new dining room set for 'just pennies a day'. There are a lot of retailers out there who promise great deals on financing. In fact the interest rate is just one component that impacts how much money you'll pay to borrow money. They want to make sure they're getting a good deal, and not paying more than necessary.īut there's more to a loan than just the rate. When shopping around for a loan, or looking at paying for a large purchase in installments - like a car, furniture or appliances - many people are usually focused on what the interest rate is going to be. There's More to a Loan than Just a Great Rate ![]()
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |