This is a very good question – and probably the most important one that you could be asking in relationship to this matter. After all, just a percentage point higher or lower in your new home loan could mean hundreds of dollars of difference in terms the your ongoing mortgage payments.
If you have a costly car or something of value which you can sell, why not? Sell them and use the proceeds to pay off your debt. Replace them with something cheaper and just as efficient. Going back to the car, you can buy a less expensive but energy-efficient car, for instance.
The first option is to use an experienced credit counselor or credit broker. They will know the debt consolidation market and will know which companies are reputable and affordable. They’ll also be able to guide you around some of the pitfalls that can trap the unsuspecting (eg hidden fees, penalties etc). Their advice (and the money that it can help you to save) is usually well worth the cost of their fee.
You should have already figured out a budget. Lenders will be looking more at salaries and debt obligations rather than credit reports. After you have met all you usual obligations, how much money do you have left over every month? Can you afford to pay on another debt? You will have to figure out how much you can pay each month. This will help you understand how many years of repayment you will need. Remember that the longer the loan period the more interest you will pay even though the monthly payments will be smaller. You can go online and find Free Loan Calculators that will allow you to play with the figures regarding interest rates, repayment rates and repayment amounts.
When you’ve whittled your list down to three candidates, send in your mortgage loan application to those three lenders. You can apply to all three on the same day, usually for free. They’ll respond with good-faith estimates, and you will have better data to compare. The lender with the lowest price wins!
The next evolution in the selling of cars is the car loan calculator. As the name suggests, a car loan calculator, calculates the easy monthly installment amount to be paid to the car dealer on purchase of it. Car loan calculators are available online. Most of the Online Car loan calculators require the user to give as input the model of the car and the number of months for which the installment amount is to be paid. The calculators immediately furnish the loan information to the user.
There is help available on the websites. You can use the comparison charts or the Online loan Calculators for calculating the amount and interest as well as repayment period that fetches the monthly installment to the amount you want. You may also have an online chat with one of the representatives of the online money lenders so that you get an exact idea.
If you do not want to put your home up as collateral, you will be searching for an unsecured bad credit loan. These may be a little harder to secure, especially in amounts above $10,000. If putting your home up is no problem, you will be searching for a secured bad credit personal loan. With your house as collateral, your loan amount could easily reach $10,000 or more. The downside? If you default on your loan you could lose your home.
The concept of Sub prime loans is not new. Earlier it was used by land based money lenders who checked every possible details of the borrower before lending out even a penny to them under these loans. These loans are specially meant for people who have very low credit rating. The loans fall under very high risk category. This is why the interest rate on such loans was very high in the initial days. But as the money lenders started seeing ample returns on these loans, they dropped the interest rates on these Sub prime auto loans too.
When this calculator appears on your computer screen, you need to type the required details in the different fields. The calculator will respond immediately with the types of used car loans that are suitable for you, and monthly installments for each type. In case you have a bad credit auto loans credit history, this will show you only the names of lenders who are ready to lend you despite your credit status. Some of the advanced forms also give complete graphic illustrations showing the effect of various down payments and loan terms on your monthly installments. Although it does help you in many ways, it is not advisable to rely upon them totally. Auto financers can try to misguide the borrowers by providing them with erroneous rates and use it just as a promotional tool.