http://www.loan.com/loans/ Loans involve borrowing money for eventual repayment with a cost involved beyond the original principal. The price of borrowing is generally defined by the amount of interest charged on a loan, but may also include transaction and processing fees. Loans can be taken out for a number of reasons. Some of the most common motivators for borrowing money include such things as purchasing a home or car, funding business activities or paying for college. The sources for loan financing might involve banks, commercial lending institutions and credit unions. http://www.loan.com/loans/what-is-a-simple-interest-loan.html A simple interest loan assesses fees based only on a flat percentage. The principal amount is multiplied by an interest rate, and the resulting sum is the only interest charged on the loan. This amount is divided among the payment terms. A borrower will pay a portion of the principal and a flat interest fee each month or payment term. When the loan is paid off, the principal and interest are completely returned to the borrower. There is no compounding of interest, and there is no ballooning of fees. A simple interest loan is usually the most affordable option.... Mon, 17 Jan 2011 03:01:00 -0800 http://www.loan.com/loans/what-is-simple-interest.html Simple interest is the most basic form of financing charge a lender can issue. With simple interest, a flat percentage fee is added to the loan principal. This fee is divided up among all the payment terms, and the borrower pays off a portion of the interest each month. Calculating Simple Interest To calculate simple interest, use this formula: principal X interest rate. The product is the amount of interest that you will be charged over the life of the loan. Add this amount to the principal to determine the total cost of the loan. This sum can be... Mon, 17 Jan 2011 03:00:00 -0800 http://www.loan.com/loans/what-are-the-advantages-of-a-loan-workout-plan.html The advantages to a loan workout plan will be divided between a lender and a borrower. For the borrower, there is a chance to avoid default on the loan by creating a voluntary repayment agreement with the lender. Further, the borrower will typically repay only a fraction of the total cost owed. For the lender, a loan workout plan is essentially a way to settle a debt without going to court. Lenders typically recover only a small amount if a default does occur. With a loan workout plan, they can recover this small amount and completely avoid the expenses... Tue, 04 Jan 2011 03:01:00 -0800 http://www.loan.com/loans/what-is-a-loan-workout-plan.html A loan workout plan presents the borrower with an opportunity to repay a debt and avoid default. Loan workouts are an option once a borrower has decided he or she cannot repay the debt according to the original terms. Loan workouts can be refinancing opportunities, but they are usually a mix of multiple strategies to reduce a debt. Default Avoidance In the case of an unsecured loan, meaning that there is no collateral at stake, a loan workout usually involves some type of refinancing to a payment plan that represents only part of the remaining owed sum. The loan... Tue, 04 Jan 2011 03:00:00 -0800 http://www.loan.com/loans/how-do-you-qualify-for-a-portfolio-loan.html Qualifying for a portfolio loan is easier than qualifying for most standard loans. These loans do not need to meet the conforming standards of institutions like Fannie Mae and Freddy Mac since the lender does not intend to sell the loans. As a result, portfolio loans can be extended to borrowers with low down payments or low credit. This means that the loans are high risk. They will be expensive to obtain. The expense is worth the risk only if the borrower has reason to believe that he or she can easily repay the loan and will not qualify... Mon, 03 Jan 2011 03:01:00 -0800 http://www.loan.com/loans/what-is-a-portfolio-loan.html A portfolio loan is held permanently by the lending institution that extends it. Since the loan is never sold on the secondary market, it does not need to be investment grade. This affects the loan terms, risks and costs. Loan Terms Generally, portfolio loans have more flexible terms than investment grade loans. These may include a low down payment, multiple cash-out options and highly variable interest rates. Risks While the loan terms above may sound enticing to a borrower having difficulty getting a loan, this type of loan is actually highly risky. The loan does not need to meet... Mon, 03 Jan 2011 03:00:00 -0800 http://www.loan.com/loans/how-does-zombie-debt-affect-your-credit.html The moment a collections agent picks up your old zombie debt and brings it back to life, the agent will begin to threaten your credit. Since the debt may be months or years old, the agent can mark you as 90 plus days late on the debt--a significant dent to your credit. If you verify the lender's right to collect and make a payment, consider asking the lender to remove the negative report from your credit. Many collections agents will be happy to take this step in return for a payment in full.... Sat, 11 Dec 2010 03:03:00 -0800 http://www.loan.com/loans/how-do-you-fight-zombie-debt.html The best way to fight zombie debt is to ensure the collections agent or lender has a right to collect. By definition, zombie debt has been "dead" for a long time, maybe even years. This could render the original financing agreement or bills no longer valid. If you are contacted by an agent or lender regarding debt that is more than 12 months old, start by writing a request for the lender to verify its right to collect. If the debt is verified, repay it immediately, but ask the lender to remove negative information from your credit report. This... Sat, 11 Dec 2010 03:01:00 -0800 http://www.loan.com/loans/what-is-zombie-debt.html Zombie debt gets its name from the popular movie villains; it is debt that has come back to life, just like a zombie. Typically, the debt comes back to existence because it has been handed to a collections agency. While the original lender stopped attempting to collect and stopped marking your credit score, the collections agent has a new fervor to collect. It is not uncommon to rediscover debts you owed on old utilities bills or medical bills from a previous residence once they have been handed to a collections agent. If you have dreaded zombie debt, ensure you... Sat, 11 Dec 2010 03:00:00 -0800 http://www.loan.com/loans/collateral-loans-title-loans.html If you want to use a vehicle that you own free and clear to obtain a loan, there are some risks involved regarding collateral loans that you should consider carefully before you decide to use this type of financing.Collateral Loans Title loans are an example of a collateral loan. Below are some of the different names that refer to a title loan:Car or auto title loanCash title loanLoan for title programAll of these are the same type of loan, one for which you pledge your car or other auto that you own free and clear to secure a collateralized... Thu, 02 Dec 2010 03:00:00 -0800 http://www.loan.com/loans/how-do-you-qualify-for-a-conduit-loan.html Qualifying for a conduit loan is not particularly different from qualifying for a traditional mortgage. You will have to qualify based on income, credit and other factors. The key difference is the lender will have to see you as a low risk for prepayment on the loan. Further, the lender will want to assume as little risk as possible, meaning credit requirements could be higher on this type of loan than on a standard mortgage. By assuring you have a low risk of prepaying or defaulting, the lender will be able to offer investors the highest chance at turning... Wed, 17 Nov 2010 03:04:00 -0800 http://www.loan.com/loans/what-are-the-advantages-of-conduit-loans.html The advantages of conduit loans are unique for each player involved. A borrower can lock in a low interest rate, often lower than market standards, in exchange for accepting a less flexible mortgage. The lender has the opportunity to resell the loan on the security market, freeing up capital instead of leaving it tied into a loan. The investor, the final player, has a chance to make a profit from mortgage lending without ever issuing a loan. All of these advantages hinge on the assumption the borrower can repay the debt on time.... Wed, 17 Nov 2010 03:03:00 -0800 http://www.loan.com/loans/what-are-the-drawbacks-of-conduit-loans.html Conduit loans are risky for all parties involved, including the borrower, the lender and the investor. The borrower receives a low interest rate on the loan but forfeits flexibility. He or she cannot prepay the loan without substantial risk of financial penalty. For the lender, issuing a conduit loan is a way to securitize a mortgage. If one borrower defaults, the investors are the ones who lose out. If multiple borrowers default, however, the lender is the one that suffers. In this case, the lender's financial standing, including its rating, could drop sharply. This can even render the lender... Wed, 17 Nov 2010 03:01:00 -0800 http://www.loan.com/loans/what-is-a-conduit-loan.html Conduit loans were first developed as a way to assist banks in selling their loan contracts on the bond market. Prior to banks' initiating this type of sale, money that was lent out would earn only interest from the borrower. It was tied-up in the loan until the borrower repaid the debt. By reselling the loan on the bond market, banks could entice investors to give them more capital, allowing for additional lending. One problem that came out of this arrangement was the common prepayment of mortgages. With the help of government organizations like Fanny Mae and Freddy Mac,... Wed, 17 Nov 2010 03:00:00 -0800 http://www.loan.com/loans/which-student-charge-card-should-you-select.html You should select a student charge card that is specifically designed for an individual in your position. Many banks advertise cards for students, and these often offer the best features. These banks are willing to overlook low credit scores or lack of assets to lend to students who are attending a two-year or four-year degree program. The banks believe these students will be able to repay the debts upon graduation. As a result, they do not impose the typical high interest rates for individuals with low credit scores. The charges may even go interest free for a number of... Thu, 11 Nov 2010 03:01:00 -0800 http://www.loan.com/loans/4-disadvantages-of-a-student-charge-card.html A student charge card is often necessary to make ongoing purchases while you are in school and not earning an income. For example, many students must place expenses like books and meal plans on a charge card since these are not covered in student loan sums. Student charge cards can help build your credit while you are in school, but this plan works only if you are able to repay the cards on time. There are a number of challenges that can arise and eat away at the benefits of a student charge card.  Lack of Collateral When a... Thu, 11 Nov 2010 03:00:00 -0800 http://www.loan.com/loans/can-you-get-a-store-charge-card-with-bad-credit.html If you are interested in getting a store charge card, you might be concerned that you will not qualify because of your bad credit history. If this is the case, you do have some legitimate concerns. When a store offers you a charge card, it will look at information from your credit report. In most cases, an automated approval system will assess your credit score to determine if you are a good credit risk. Some stores will have more lenient credit approval than others. However, if you have bad credit, it may be very difficult to get approved.... Tue, 09 Nov 2010 03:01:00 -0800 http://www.loan.com/loans/what-is-a-store-charge-card.html A store charge card is a private label charge card issued through a retail outlet. Retail establishments will often offer incentives to entice individuals to sign up for this type of account. Once you have a charge card, you can then use that card when making purchases from the retail outlet. Once you have made a purchase, you will have to repay your debt within a month. This is not like a retail credit card with which you are allowed to leave a balance on the card. You will also have to pay fees to use this card.... Tue, 09 Nov 2010 03:00:00 -0800 http://www.loan.com/loans/what-is-the-best-way-to-refinance-your-mobile-home-loan.html It is least expensive to refinance a mobile home loan directly with your original lender. When you refinance directly, the original lender is less likely to charge refinancing, prepayment or other penalties to your loan. However, you may not always find the best refinancing offers through a direct refinance. If you are considering going with a third party, select a lender that is approved by the FHA for guaranteed manufactured home refinancing loans. Loans guaranteed by the FHA offer low rates, and they are excused from private mortgage insurance.... Sat, 06 Nov 2010 03:03:00 -0800 http://www.loan.com/loans/is-interest-on-a-mobile-home-loan-tax-deductible.html You can deduct interest on any loan for a qualified home, and a mobile home loan will meet these terms in most cases. You must be using the home as your primary residence or earning income off its use as a business investment. It is also necessary the home have sleeping, cooking and toilet facilities in order to be considered a qualified home. If your mobile home is in a community with shared facilities but does not house them directly, speak with an accountant regarding whether the interest on your loan is still deductible. ... Sat, 06 Nov 2010 03:01:00 -0800