Choose the Right Bank Loan

You're here > Home > My Mom's Blog > Choose the Right Bank Loan


If you need a loan to buy your car, as down payment for housing loan, to finance your vacation travel, for medical emergencies, to pay or consolidate high-interest credit cards, to pay for your college expenses, and others, you can check the different types of loans being offered by banks.

You can personally visit or call several bank offices or visit the banks' websites to know the different types of loans that the banks offer.  Some of the loans that you can find in some banks are:

1. Installment loan
2. Equity access loan
3. Home equity credit line
4. Home residence loan

Installment Loan
The installment loan that you can get from a bank is a convenient way to borrow to finance your personal need and for things you want.

The installment loan usually has the following features:

1. Competitive fixed or variable interest rate
2. Fixed monthly payments
3. Unsecured loan
4. Discount on interest rate with monthly automatic payments from your bank checking or savings account with the bank where you got your installment loan

Equity Access Loan
The equity access loan is granted based on the equity in your home.  You can use the loan proceeds to pay anything you want - automobile, home improvements and renovations, stock investments, college expenses, and others.

The equity access loan usually has the following features:

1. Competitive fixed or variable interest rate
2. Fixed term and monthly payments.  A flexible repayment term is available.
3. No origination fees
4. No closing costs
5. Discount on interest rate with monthly automatic payments from your bank checking or savings account with the bank where you got the equity access loan
6. With possible income tax benefits (consult first your tax preparer or accountant before you apply for this type of loan)

Home Equity Credit Line
The home equity credit line is a line of credit which is granted based on the equity in your home.  You can borrow money up to the maximum of your credit line by using checks to pay anything you want - automobile, home improvements and renovations, stock investments, college expenses, and others.

The home equity credit line has the following features:

1. Competitive variable interest rate
2. Convenient check access
3. Potential tax advantage
4. Interest is charged only when you borrow from your account
5. Flexible repayment terms such as interest payment only or interest plus principal payment

Home Residence Loan

The home residence loan is a refinancing loan on your home to reduce the existing higher interest on the mortgage loan.

The home equity credit line has the following features:

1. Competitive fixed or variable interest rate
2. No origination fees
3. No closing costs
4. No appraisal fees
5. Discount on interest rate if a monthly automatic payment is made from a checking or savings account established with the same bank

You may consult your tax preparer or  tax/finance professional about the tax advantages of certain bank loans.

Tips
1.  Inquire from several banks in your locality about the financial, banking and loan services that they offer.  Open a checking or savings account with a bank that offers services that you may need at the present time or in the future.

2.  Avail of the monthly automatic payment for your bank loans to receive a discount on the fixed or variable interest rate on your loan.

3.  Apply for online banking so that you can monitor your checking or savings account, loan balance and other important information.

If the above information will help you in your decision to apply for a bank loan, please give your comments below.  Thanks

Back to > Home or My Mom's Blog or My Mom's Store