The Best Loans - What Are They?
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James Copper
Apr 26, 2013, 11:03:09 AM4/26/13
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Article Title: The Best Loans - What Are They?
Author: James Copper
Word Count: 562
Article URL: http://www.isnare.com/?aid=140344&ca=Finances
Format: 64cpl
Contact The Author: http://www.isnare.com/eta.php?aid=140344
Easy Publish Tool: http://www.isnare.com/html.php?aid=140344
*********************** ARTICLE START ***********************
The definition of the best loans is different depending on who you ask. For lenders the best loans are secured loans, of any type, and high interest loans. For borrowers the best loans are unsecured loans with low interest rates.
So, how can a median be found that makes a loan the best loan for both lenders and borrowers? The answer is in the details of the loan and how affordable and how comfortable the loan details are for the borrower.
Lenders prefer secured loans because they offer a safeguard. The borrower puts up collateral for the loan and should they default on the loan the lender then seizes ownership of the collateral and can sell it to recoup the loan amount still owed. With secured loans the borrower also assumes risk, so it is more likely that the borrower will not default.
They also want to be able to charge as high of interest rates as possible. Interest rates are how lenders make their money. The interest the charge is 100% profit for them. So, of course they want to charge as much interest as possible.
Borrowers prefer unsecured loans because they do not have to assume risk by putting up collateral. They also prefer lower interest rates. Interest rates tack on a large amount of additionally expense onto the money borrowed. The lower the interest rate the less the loan costs the borrower.
With the recent spare hike in interest rates a secured loan might not be the best option at the moment. If the interest rates continue to increase then homeowners might be pushed to afford their repayments, not to mention if house prices fall.
It is difficult as a secured loan will generally have a lower interest rate, be more flexible, allow you to spread the repayments out over a longer period of time and you will also be able to borrow more. So the best loan is dependant on your requirements and circumstances.
The details of interest rate sand collateral or no collateral are important and should be considered. These details can be adjusted until both the borrower and lender are satisfied. They can mean the difference between a good loan and the best loan for a borrower.
The best loans for both borrowers and lenders are loans that the borrower can afford. The bottom line is that if a borrower can afford a loan then details do not matter. The borrower can afford to make the payments, so they make them and end up paying off the loan as stated in the contract.
So, the best loans are not that easily defined. In some situations the best loan may be a secured loan with a low interest rate, while in other situations the best loan may be an unsecured loan with a slightly higher interest rate. It all comes down to a few factors.
The borrower should be able to afford the loan, they should feel as if they are not risking too much and they should feel comfortable with the loan. The lender really has the most control over a loan situation, so every loan is the best loan for them. It is really the borrower who has to be careful when defining their best loans.
About The Author: James Copper is a mortgage broker with over 30 years experience. He works for http://www.any-loans.co.uk as a loans advisor. In his spare time he writes on all things finance and investment related.
Please use the HTML version of this article at:
http://www.isnare.com/html.php?aid=140344
*********************** ARTICLE END ***********************
- To distribute your articles go to http://www.isnare.com/distribution.php
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Message delivered directly to members of the group:
publish-the...@googlegroups.com
*****************************************************************
Please consider this free-reprint article written by:
James Copper
*****************************
IMPORTANT - Publication/Reprint Terms
- You have permission to publish this article electronically in free-only publications such as a website or an ezine as long as the bylines are included.
- You are not allowed to use this article for commercial purposes. The article should only be reprinted in a publicly accessible website and not in a members-only commercial site.
- You are not allowed to post/reprint this article in any sites/publications that contains or supports hate, violence, porn and warez or any indecent and illegal sites/publications.
- You are not allowed to use this article in UCE (Unsolicited Commercial Email) or SPAM. This article MUST be distributed in an opt-in email list only.
- If you distribute this article in an ezine or newsletter, we ask that you send a copy of the newsletter or ezine that contains the article to http://www.isnare.com/eta.php?aid=140344
- If you post this article in a website/forum/blog, ALL links MUST be set to hyperlinks and we ask that you send a copy of the URL where the article is posted to http://www.isnare.com/eta.php?aid=140344
- We request that you ask permission from the author if you want to publish this article in print.
The role of iSnare.com is only to distribute this article as part of its Article Distribution feature ( http://www.isnare.com/distribution.php ). iSnare.com does NOT own this article, please respect the author's copyright and this publication/reprint terms. If you do not agree to any of these terms, please do not reprint or publish this article.
*****************************
Article Title: The Best Loans - What Are They?
Author: James Copper
Word Count: 562
Article URL: http://www.isnare.com/?aid=140344&ca=Finances
Format: 64cpl
Contact The Author: http://www.isnare.com/eta.php?aid=140344
Easy Publish Tool: http://www.isnare.com/html.php?aid=140344
*********************** ARTICLE START ***********************
The definition of the best loans is different depending on who you ask. For lenders the best loans are secured loans, of any type, and high interest loans. For borrowers the best loans are unsecured loans with low interest rates.
So, how can a median be found that makes a loan the best loan for both lenders and borrowers? The answer is in the details of the loan and how affordable and how comfortable the loan details are for the borrower.
Lenders prefer secured loans because they offer a safeguard. The borrower puts up collateral for the loan and should they default on the loan the lender then seizes ownership of the collateral and can sell it to recoup the loan amount still owed. With secured loans the borrower also assumes risk, so it is more likely that the borrower will not default.
They also want to be able to charge as high of interest rates as possible. Interest rates are how lenders make their money. The interest the charge is 100% profit for them. So, of course they want to charge as much interest as possible.
Borrowers prefer unsecured loans because they do not have to assume risk by putting up collateral. They also prefer lower interest rates. Interest rates tack on a large amount of additionally expense onto the money borrowed. The lower the interest rate the less the loan costs the borrower.
With the recent spare hike in interest rates a secured loan might not be the best option at the moment. If the interest rates continue to increase then homeowners might be pushed to afford their repayments, not to mention if house prices fall.
It is difficult as a secured loan will generally have a lower interest rate, be more flexible, allow you to spread the repayments out over a longer period of time and you will also be able to borrow more. So the best loan is dependant on your requirements and circumstances.
The details of interest rate sand collateral or no collateral are important and should be considered. These details can be adjusted until both the borrower and lender are satisfied. They can mean the difference between a good loan and the best loan for a borrower.
The best loans for both borrowers and lenders are loans that the borrower can afford. The bottom line is that if a borrower can afford a loan then details do not matter. The borrower can afford to make the payments, so they make them and end up paying off the loan as stated in the contract.
So, the best loans are not that easily defined. In some situations the best loan may be a secured loan with a low interest rate, while in other situations the best loan may be an unsecured loan with a slightly higher interest rate. It all comes down to a few factors.
The borrower should be able to afford the loan, they should feel as if they are not risking too much and they should feel comfortable with the loan. The lender really has the most control over a loan situation, so every loan is the best loan for them. It is really the borrower who has to be careful when defining their best loans.
About The Author: James Copper is a mortgage broker with over 30 years experience. He works for http://www.any-loans.co.uk as a loans advisor. In his spare time he writes on all things finance and investment related.
Please use the HTML version of this article at:
http://www.isnare.com/html.php?aid=140344
*********************** ARTICLE END ***********************
- To distribute your articles go to http://www.isnare.com/distribution.php
- For more free-reprint articles go to http://www.isnare.com
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