Home loan interest rate

All loans are either secured or unsecured. A secured loan requires the borrower to put up an asset as collateral to secure the loan for the lender. An auto loan is an example of a secured loan. If you don’t make your car payments, the lender will repossess the car. An unsecured loan requires no collateral. Most While shopping for any loan, it’s a good idea to use a loan calculator. A calculator can help you narrow your search for a home or car by showing you how much you can afford to pay each month. It can help you compare loan costs and see how differences in interest rates can affect your payments, especially with mortgages. The right loan calculator will show you the total cost of a loan, expressed as the annual percentage rate, or APR. Loan calculators can answer a lot of questions and help you make good financial decisions. Secured vs. unsecured loans Unsecured loans don’t require collateral, though failure to pay them may result in a poor credit score or the borrower being sent to a collections agency. Common types of unsecured loans include credit cards and student loans. Loan basics to know Interest rate - An APR - The Loan term - Your loan term is the period over which you will make repayments. Your loan’s principal, fees, and any interest will be split into payments over the course of the loan’s repayment term. Principal - The principal is the amount you borrow before any fees or accrued interest are factored in.