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How many years to take a mortgage?

Many buyers choose a 30-year fixed-rate mortgage for one big reason: the lowest monthly fee. This is because you repay the loan for a long time, 30 years if you keep the loan until the end.

Here is an example: Let’s say you take a 30-year loan with a fixed interest rate of USD 200,000 with an interest rate of 4.10%. Your monthly payment, excluding taxes and insurance, will be around USD 966 per month. This is a relatively inexpensive payment.

Now let’s say you are considering a 15-year mortgage. If you borrow the same USD 200,000 with an interest rate of 3.20% in the form of a 15-year fixed-rate loan. Your monthly installment, again without taxes and insurance, would drop to around USD 1,400, which is a more discouraging figure. However, you will pay a higher monthly fee for only 15 years, compared to 30 years.

When does a 30-year mortgage make more sense?

When does a 30-year mortgage make more sense?

If your monthly cash flow is your biggest concern, or you earn commissions and your income is variable, a 30-year fixed-rate loan may be the best choice. Because this type of loan has the lowest monthly payment level, it also leaves more money to the budget each month.

A 30-year loan is a good way to enter a nice home with an affordable monthly fee. You can always pay your main balance faster by paying extra every month. However, you are not closed for a higher mortgage payment, you can pay more, but you only have to pay a lower monthly fee.

When does a 15-year mortgage make more sense?

When does a 15-year mortgage make more sense?

If you can afford a payment that comes with a short-term loan, such as a 15-year mortgage, a 30-year mortgage may not be a wise financial move. A 15-year fixed rate has mortgage rates that are 1% lower than a 30-year fixed-rate loan.

Nobody likes to pay mortgage interest. With a 15-year loan, you will save tens of thousands of dollars. You will pay much less to borrow money from your mortgage.

How long will you live at home?

How long will you live at home?

You should also consider how long you will live in your home. This can make a big difference in whether a 30-year or 15-year mortgage is best. If you plan to live in your home for a short period of time – say eight years or less – then a 30-year loan may make the most sense.

You benefit from lower monthly fees and you won’t have to pay such high interest because you will sell your home well before the loan repayment date. However, if you want to live at home for 15, 20 or more years, a 15-year loan may make more financial sense.

However, if you plan to live in your home for a long time, you might as well shave tens of thousands of the interest that you pay when you live there. An experienced loan specialist can help.

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SMS instant messages – list of loans based on SMS

loan company offers you a payday SMS and you are wondering if using such a proposal is a good solution? This is probably a topic where different opinions may arise. However, one thing is certain – technical progress may surprise you.

SMS loan – what is it?

SMS loan - what is it?

Are you looking for an answer to the question of what is meant by an SMS loan? The matter is very simple, consider an online loan. To be precise, think about how you can define online loans.
Online loans are, of course, loans that are made online.

In the case of an SMS loan, receiving a loan is tantamount to receiving a specific message. Importantly, an SMS loan is a form of borrowing that is popular (it’s also important to remember that customers don’t have to talk about what money is needed for).

Which company grants loans by SMS?

Which company grants loans by SMS?

Are you interested in companies providing loans by SMS? In line with what has been said, the SMS loan is popular. As for the specifics, it rather does not make sense to refer to all companies, let’s focus on some examples – a great example is Smart Loan.
As for details, it is necessary to register in advance. When registration is complete, it’s time to send an SMS. Leave the number and content, it is not the most important thing at the moment – all you have to do is point out that the text of the SMS informs you about the amount, PESEL and the period for which the money is borrowed. What happens when I send a message? After sending the message, you must wait for a response from the lender (the message will contain the application code).
It is not difficult to guess that this is not all that should be remembered. Simply put – you still need a message that will confirm your submission. In addition, the message must be sent back within an hour.

It is also worth emphasizing that there are companies that offer loans via SMS, but these loans are not targeted at everyone (it cannot be ruled out that loans via SMS are only granted to regular customers).

Benefits of SMS loans

Benefits of SMS loans

Are you wondering what benefits arise from loans granted via SMS? Let’s go back to the very beginning of the text, specifically to the fact that technical progress may surprise you. After all, surprises are positive and negative, but in the case of SMS loans, the first situation occurs.

Anyway, a reference to online loans will once again be useful. Specifically, how can you compare online loans and stationary loans? An online loan is a huge convenience (compared to stationary points), there is no doubt about that.
It should be admitted, however, that some may have a slightly different opinion on this subject.

Why is this being said at this moment? The explanation is simple – an SMS loan is another convenience. This is not a big difference compared to online loans, but there are progress and the most important thing (it’s difficult to refer to details, companies have different proposals).

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Withdrawal and resignation from the loan agreement

In the 21st century, more and more people are using the internet. As well as decides to shop online and many people borrow at non-bank companies. Often, people make decisions about payday loans too quickly in a sudden surge of adrenaline that extra money will be useful for a variety of things. Many people actually spend extra money on paying off overdue bills, car repairs, a doctor, shopping and other pleasures. However, there are also those who regret the payday loan and wonder how to withdraw from the loan agreement.

When we buy online in online stores, we have the right to a refund. If a product does not meet our expectations, we can also make a complaint. In the case of loans and installment loans, we can choose the option to withdraw from the contract.

Can you opt-out of the loan?

Can you opt-out of the loan?

The loan agreement is the most important element in the process of borrowing extra money. Each borrower has the right to withdraw from the loan agreement within a period not exceeding 14 days from the date of its conclusion.

People who want to withdraw from the contract do not have to state the reason for their decision. The right to resign gives us the Consumer Credit Act. It does not matter which loan company the customer has used and whether it was an installment loan or so-called Online Payday loans. Everyone has the same right.

For the full effectiveness of withdrawal, it is necessary to inform the lender. For this purpose, we should prepare a statement and send it to the lender’s address or deliver it in person. When we send the document, choose a registered letter, preferably with confirmation of receipt. Please note that the date on the postmark is legible.

The preparation of the statement is not difficult

The preparation of the statement is not difficult

We should include first of all our and borrower’s data, date and put the formula: “I hereby withdraw from the loan agreement No. …”. The statement should also be hand-signed by the client.

In addition, if we withdraw from the loan agreement it means that we must also return the money. Then the customer is obliged to return the amount paid within 30 days of submitting a statement of withdrawal from the contract.

At the same time, the customer is also required to pay interest for the period from the date of disbursement of the loan to the date of repayment of the loan amount to the account. Information on the amount of interest for each day can be found in the loan agreement.

Borrowers’ rights

bank

An extra cash injection is the only financial support for some people to finance urgent expenses. However, many people are not wondering how they will pay off their debts. They often think about whether you can withdraw from the loan agreement.

The only and most important document is a loan agreement, which we sign with a non-bank company. The contract should contain clearly defined parties to the contract, as well as their signatures. The first page of the contract should include the annotation who wants to borrow additional money, and the second page should state that the lender who gives the amount. In addition to signatures, the contract should also contain several key provisions. It is essential to:

  • determination of the type of liability, and therefore whether it is a short-term loan or an installment loan;
  • the amount of the commitment;
  • loan period;
  • loan costs;
  • and how to regulate the payment – whether it is a transfer to an account or another form of payment.

With such a well-described contract, we can avoid the risks associated with payday loans. From the documents, we can also find out whether there is a possibility of early repayment of the obligation, an extension of the deadline for regulating the acquired benefit or how to withdraw from the loan agreement.