It is easy to loose sight of reality when you are looking for a new car either for buying or leasing. Before you sign on the dotted line for an auto loan, take a critical look at your finances, credit score, and monthly income for personal auto loans the next few years of term of auto loan.
In the event that you get a 36-month loan at 4% with a $2000 rebate, your payments (monthly) will be $30 lower. You would also save a little ove $1100 over the cost of the 0% loan. Always run the numbers. If you are a little math-phobic that’s okay. Use one of the many Free Loan Calculators available.
The less debt obligations you have, the more cash you will have Free Loan Calculators every month to put towards a mortgage payment. I recommend paying off any credit card debt you have before buying a house because with high interest rates, your debt can easily snowball. Anything with an interest rate over 8-9% is potentially trouble.
Your credit score is vital because not only does it determine if you get qualified and approved for the loan at all, but it plays a colossal role in your mortgage interest rate. When looking at the big picture over the life of the loan, a lower interest rate will save you thousands of dollars. In the short run, it will help keep down your monthly payment. A couple hundred dollars on a mortgage payment can be a life saver for some people. If you take the little amount of time to clean up your credit, you can likely afford a more expensive home because of the interest savings. Also, if you have the cash, you can buy mortgage points to help with the interest rate. Your credit score is an integral part of the decision process on what you can afford when looking for a new home.
Quick and easy. Most lenders will ask you to fill out an application and provide a few simple documents, including proof of income, job, expenses, etc.
Now that you have calculated the EMIs from various lenders and the quotes too are ready, you can begin with the car loan negotiation. It is advisable to zero in on the lender that offers the lowest interest rate and the lowest EMI. The rates mentioned on the web sites need not necessarily be fixed and will most of the time be negotiable. Since you have quotes from other lenders ready, negotiation becomes even easier. Contact the lender and ask him to lower your interest rate and EMI. Display the best quotes from other lenders and this will help bring down the rates further. The lender will fear that you may move away to a different lender.
Now, your mortgage loan calculator is ready so do the calculation and see what comes up. If you can afford it, take the next step. You’re on your way to a new home!
To learn more information on personal auto loans look into our own web-page.