The Truth About Car 0% Financing Fees

Filed under Lending Money, Loans

Many people who are scouring the market for a car have seen an offer for car 0% financing fees at some point. First, someone may consider the deal to be really good, but only if that actually is the interest rate you will receive as a car buyer. The problem is that many advertised 0% car finance offers are also very hard to qualify for and most car buyers will have problems trying to get approved for this type of financing. The best tip to qualify for this kind of offer is to know the facts first.

Attract Customers with 0% Car Loan Financing

In truth, car makers and dealerships typically use 0% car finance deals as a way to attract customers. Most people, who even do follow up on these deals, usually will not have a good chance at securing one. The first major condition that sellers use to disqualify a person from getting these offers is the credit history. Many dealerships want you to have earned at least a 700 credit score before they can think about giving you one of these deals. They check the person’s credit and his or her complete credit history. If the record has any negative marks, it is likely to become disqualified. The same rules apply to people who try to find zero interest auto loans. So be sure to get your credit report and scores and know beforehand what low interest deals you can secure with your credit history.

If a potential car buyer ends up passing the first credit screening, they become eligible to follow the terms of the 0% deals, which are made to decrease the number of vehicles that can actually receive 0% financing. Usually, only specific makes and models can receive 0% financing in addition to cars that are present on the parking lot.

Many times, a seller will provide 0% financing along with other incentives and rebates. They might make it seem like you are getting all of the offers at once, but most people will not be able to receive one or the other. They must also know that a 0% deal is typically only made for car loans up to 1 to 3 years and not for car lending that is less than 3 years. Also, many times 0% financing does not apply to the entire duration of the loan and the interest rate can increase greatly once repayments begin.

People who want to follow up on car 0% financing fees should look at all of the qualifications and terms first. Even though these deals are quite attractive, they can be used by only a few people and most people will have trouble trying to qualify. Those who do qualify should pay attention to all the terms and conditions, how long the 0% contract will last and what are the monthly payments.

Tags: Attract Customers with 0% Car Loan Financing

Low Mortgage Rate Lending

Filed under Loans

The housing market may be down, but there are still benefits to buying a home. One of the silver linings in this down housing market is that the low interest rates make it attractive to buy. Interest rates on most mortgage types are at, or near, historic lows.

Best Low Mortgage Rates

The 30 year fixed loans will carry a great 4.2 percent interest rate in this current economy. Rates like these haven’t been seen in years and won’t be seen again when the economy improves. The 30 year fixed rate is generally what a home buyer will use to obtain financing for a home. There is also an option to carry a 15 year fixed, which will carry an interest rate of 3 percent annually.

Adjustable rate mortgages are also at really low interest levels. You can obtain a low rate of under 3 percent for the 5/1 ARM loan. The only downside to an adjustable rate loan is that the loan will become more expensive as the interest rates go up. However, if you are able to refinance later to a fixed loan, the ARM could be a great way to obtain an affordable loan.

Benefits of Low Mortgage Rates

Lower interest rates help first time homebuyers the most because low interest rates make payments more affordable. A 100,000 dollar loan at 4.2% would incur a total interest of about $76,000 over the life of the mortgage loan if you made only the monthly payments for a 30 year fixed. A 5% interest rate at 30 years fixed would be $93200. By having the 4.2% loan you could save yourself $17200 over the life of the loan. That kind of savings cannot be ignored by any means when you are making 30,000 dollars a year.

Interest Rate Details of a 30 Year Fixed Mortgage Loan

Mortgage Interest Rate of 4.2%

• Total payments ~ 176,045
• Total interest ~ 76,045
• Paying the monthly payment of $489
• Save $17211 having 4.2% compared to 5% interest
• Save $39793 having 4.2% compared to 6% interest

Mortgage Interest Rate of 5%

• Total payments ~ 193,256
• Total interest ~ 93,256
• Paying the monthly payment of $537
• Save $22582 having 5% compared to 6%

Mortgage Interest Rate of 6%

• Total payments ~ $215,838
• Total interest ~ $115,838
• Paying the monthly payment of $600

Another great thing about housing rates being low is that selling your current home could be a little easier. With easier access to credit, you could find someone willing to buy your home if the price is right. As long as there is equity in your home when you go to sell, there is profit to be made for sellers.

Just because the housing market is poor does not mean that there is not a deal to be had. As long as you have the credit and down payment needed, this kind of market can be a great time to buy. It is certainly a buyer’s market and the banks are making it easy to finance a loan with low interest.

Tags: Benefits of Low Mortgage Rates, Best Low Mortgage Rates