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Can You Buy a Car With a Personal Loan? | Personal Loans and Advice

31Oct

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Can You Buy a Car With a Personal Loan? | Personal Loans and Advice

Buying a car can be great fun, but you'll likely face at least some financial limitations. If you aren't planning to pay cash for your car, you'll need a plan for how to finance it. An auto loan is the natural choice, but one other option you might consider is a personal loan. Auto loans and personal loans have key differences, and an auto loan will typically make more sense.Can You Use a Personal Loan To Buy a Car?Yes, you can use a personal loan to buy a car. A personal loan can be used to buy almost anything not prohibited by the lender, says Ganesh Pandit, professor of accounting at Adelphi University.What usually matters for approval is your perceived ability to repay the loan, not how you'll use the money. The lender may ask the purpose of the funds when disbursing the loan, but thi...

Can You Refinance a Mortgage With Bad Credit? | Mortgages and Advice

27Oct

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Can You Refinance a Mortgage With Bad Credit? | Mortgages and Advice

If your credit score is lackluster, you may worry that it could prevent you from refinancing your mortgage. Luckily, a refinance can be difficult but not impossible. Here's what you need to know about how to refinance your mortgage with bad credit.Options for Refinancing Your Mortgage With Bad CreditMortgage lenders typically look for a credit score of at least 620 to refinance conventional loans, but standards are more flexible with government-sponsored mortgages.Here are some options to explore for refinancing with bad credit. Eligibility usually depends on who owns your mortgage and whether you meet the requirements.FHA Rate-and-Term RefinanceYou may be able to do a rate-and-term FHA refinance with a credit score of 500 to 580, but those loans can be hard to access. That's because you ...

Mortgage Fee Structure Changes: Understand 2023 LLPA Changes | Mortgages and Advice

23Oct

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Mortgage Fee Structure Changes: Understand 2023 LLPA Changes | Mortgages and Advice

A new federal rule aimed at improving mortgage accessibility could result in higher prices for homebuyers with good credit while smoothing the path for riskier borrowers.Since May 2023, mortgages delivered to the Federal Housing Finance Agency have faced changes to their loan-level price adjustments. These changes affect conventional mortgages and refinance loans purchased by Fannie Mae and Freddie Mac, adjusting conventional mortgage interest rates higher for some homebuyers and lower for others.What Are LLPA Fees?Loan-level price adjustments, or LLPAs, are risk-based price adjustment fees. These mortgage fees are tied to a range of factors, including your credit score, loan-to-value ratio and the type of mortgage. Lenders typically use LLPAs to determine your mortgage interest rate.LLPA...

Is a 15- or 30-Year Mortgage Right for You? | Mortgages and Advice

23Oct

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Is a 15- or 30-Year Mortgage Right for You? | Mortgages and Advice

If you're preparing to buy a home, you will need to look at not only mortgage interest rates, but also loan types and terms. Your mortgage term is how long you have to repay the loan, and most terms are 15 or 30 years.Should you get a 15- or 30-year mortgage? If you can afford the payment on a 15-year mortgage, the long-term interest savings are great. But the lower monthly payment of a 30-year mortgage could offer you more flexibility if your financial situation changes.Here, we break down the 15- vs. 30-year mortgage debate, including the pros and cons of each and how to decide between the two.What Is the Difference Between a 15- and 30-Year Mortgage?The primary difference between a 15- and 30-year mortgage is the length of time to pay off the loan.A 15-year mortgage pays off your home ...

Do Student Loans Affect Your Credit Score? | Student Loans and Advice

21Oct

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Do Student Loans Affect Your Credit Score? | Student Loans and Advice

Student loans can have a major effect on your credit score, so it pays to understand the relationship between student loans and credit. Borrowing and paying back student loans can do wonders for your credit history but missteps like skipping payments or defaulting can send your score plummeting.Can Student Loans Positively Impact Your Credit?If you manage your student loans responsibly, they can help you build good credit. Here's how:Build a Positive Payment History The most heavily weighted factor in your credit score is your payment history, which makes up 35% of your score. That's why one of the best things you can do for your credit is pay your student loan bill on time and in full every month.You can also help your credit score by starting your student loan repayment ahead of schedul...

Payday Loan Consolidation: What You Need to Know | Personal Loans and Advice

19Oct

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Payday Loan Consolidation: What You Need to Know | Personal Loans and Advice

Payday loans are designed to be short-term loans for modest amounts to bridge the gap from today until payday. While they can quickly get you the cash you need, those fast funds come with a price. While some states cap the interest rate, others allow lenders to charge annual percentage rates in excess of 600% – far more expensive than the average credit card.If you have this type of loan you can get out from under those high interest rates through payday loan consolidation. With this strategy, you'll use a personal loan to pay off your payday loans. If your credit is less than stellar, you may face a higher interest rate than borrowers with good credit. However, that interest rate will likely be far lower than what you're paying with a payday loan.Find the Best Personal Loans for You Lend...

How to Spot and Avoid Mortgage Scams | Mortgages and Advice

19Oct

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How to Spot and Avoid Mortgage Scams | Mortgages and Advice

Mortgages are big business. According to the Federal Reserve Bank of New York, U.S. consumers owed $12.01 trillion on their homes in the second quarter of 2023.Unfortunately, scammers see mortgage transactions as a chance to get a piece of that pie. "Because a lot of money is switching hands at one time, that's literally the most attractive thing to any scammer anywhere in the world," says Jason Zirkle, training director at the Association of Certified Fraud Examiners.Protect yourself by learning how common mortgage scams work and how to spot some telltale signs of fraud.Compare Top Mortgage Lenders Lender Learn More Min. Down Payment Min. Credit Score Lender Learn More Min. Down Payment Min. Credit Score Lender Learn More Min. Down Payment Min. Credit ScoreCommon Types of Mortgage Sca...

What Is Loan-Level Price Adjustment? | Mortgages and Advice

9Oct

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What Is Loan-Level Price Adjustment? | Mortgages and Advice

Loan-level price adjustments, or LLPAs, are fees that influence the cost of a conventional mortgage based on a borrower's risk level. LLPA fees lower mortgage pricing for low-risk borrowers while raising the cost for higher-risk borrowers. Here's what you need to know about LLPAs if you take out a mortgage.What Are Loan-Level Price Adjustments?"LLPAs are adjustments to the price of a mortgage that compensate for risk," says Casey Fleming, a mortgage advisor and author of "The Loan Guide: How to Get the Best Possible Mortgage." Ultimately, it's what affects your price quote, he says.When you get a conventional mortgage quote, your lender will determine the interest rate and cost of discount points by using an LLPA fee matrix set by Fannie Mae or a credit fee matrix from Freddie Mac. These ...

Can You Get a Loan Without a Job? | Personal Loans and Advice

4Oct

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Can You Get a Loan Without a Job? | Personal Loans and Advice

Losing your job can be scary. You need your paycheck to cover essentials like housing, food and child care. If you're out of work, you may need to get an emergency loan to make ends meet. You can take out a loan without a job, but qualifying for one will be difficult unless you can show another source of income. Here's what you need to know about how to get a loan if you don't have a job.Can You Get a Loan if You Don't Have a Job?"It can be very difficult – or impossible – to get a traditional unsecured loan while being unemployed," says Jim Triggs, president and CEO at Money Management International, a nonprofit credit counseling agency.Because income verification is a key step in underwriting loans, you will present a greater risk to lenders if you lack a steady income compared with a b...

Can I Use a Personal Loan to Pay My Tuition? | Personal Loans and Advice

30Sep

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Can I Use a Personal Loan to Pay My Tuition? | Personal Loans and Advice

You may be able to use a personal loan to pay for all or some college-related expenses, but it's likely not your best option. Borrowers can typically use personal loans for any purpose, and some lenders may not ask what the funds will be used for. However, some lenders may refuse to provide a personal loan for education expenses."While you certainly can use personal loans for college expenses, these would not be my first choice," says Joe Orsolini, president of College Aid Planners. "There are far better options, such as federal student loans or private student loans that make a lot more sense for college expenses."Some lenders will not provide a personal loan to cover tuition costs because the 2008 Higher Education Opportunity Act placed several requirements on lenders offering private e...