in interest rate must be ,,...
fill in the balnks
Answers
Answer:
question kha hai
Step-by-step explanation:
mark ms brilliant
Answer:
Top 12 Factors that Determine Interest Rate:-
1) Credit Score
Credit ScoreThe higher your credit score, the lower the rate.
Credit ScoreThe higher your credit score, the lower the rate.
2) Credit History
Credit HistoryThe less credit history you have, the less knowledge a lender has of your repayment ability, possibly making you slightly more risky. The better the payment history, the better the rate.
Credit HistoryThe less credit history you have, the less knowledge a lender has of your repayment ability, possibly making you slightly more risky. The better the payment history, the better the rate.
3) Employment Type and Income
Employment Type and IncomeSelf-employed, hourly employed, bonus-based pay – these all affect the risk factors of whether you’ll be able to pay back the loan.
Employment Type and IncomeSelf-employed, hourly employed, bonus-based pay – these all affect the risk factors of whether you’ll be able to pay back the loan.
4) Loan Size
Loan SizeHow much money are you asking for? Often if you are requesting an amount under a certain level (i.e.$100,000), there may be a slight increase in rate.
Loan SizeHow much money are you asking for? Often if you are requesting an amount under a certain level (i.e.$100,000), there may be a slight increase in rate.
5) Loan-to-Value (LTV)
Loan-to-Value (LTV)What percentage is your loan amount to the value of the property? Typically, the lower the percent, the lower the rate.
Loan-to-Value (LTV)What percentage is your loan amount to the value of the property? Typically, the lower the percent, the lower the rate.
6) Loan Type
Loan TypeFixed, variable, adjustable, balloon – these all have varying rates because of the variation of risks. Depending on the situation, your initial interest rate may be lower with an adjustable rate than with a fixed rate but you run the risk of the rate increasing significantly later on.
Loan TypeFixed, variable, adjustable, balloon – these all have varying rates because of the variation of risks. Depending on the situation, your initial interest rate may be lower with an adjustable rate than with a fixed rate but you run the risk of the rate increasing significantly later on.
7) Length of Term
Length of TermThe shorter the term on your loan, the quicker you’ll be paying down the debt; possibly resulting in a better rate. It’s important to note that your payments will most likely be higher, so you’ll want to make sure you can afford it.
Length of TermThe shorter the term on your loan, the quicker you’ll be paying down the debt; possibly resulting in a better rate. It’s important to note that your payments will most likely be higher, so you’ll want to make sure you can afford it.
8) Payment Frequency
Payment FrequencyBecause of the agriculture industry’s unique nature, if you elect for a payment plan that allows for an annual or semiannual payment rather than a monthly one, you can expect a higher rate.
Payment FrequencyBecause of the agriculture industry’s unique nature, if you elect for a payment plan that allows for an annual or semiannual payment rather than a monthly one, you can expect a higher rate.
9) Property Type
Property TypeA residential house will have a lower interest rate than a commercial farm on 50 acres because of the increased risk that comes with a farm loan. Purchasing a farm or land is different because there aren’t as many properties for value comparison, buyers or people that can afford to.
Property TypeA residential house will have a lower interest rate than a commercial farm on 50 acres because of the increased risk that comes with a farm loan. Purchasing a farm or land is different because there aren’t as many properties for value comparison, buyers or people that can afford to.
10) Co-borrowers
Co-borrowersWill there be other people on the loan, and if so, what does their credit look like? All parties involved in the loan will be used in determining the rate.
Co-borrowersWill there be other people on the loan, and if so, what does their credit look like? All parties involved in the loan will be used in determining the rate.
11) Debt Ratio
Debt RatioHow much money is made monthly versus the cost of monthly bills. The typical ratio that lenders looks at is 42%.
Debt RatioHow much money is made monthly versus the cost of monthly bills. The typical ratio that lenders looks at is 42%.
12) Documentation Available
Documentation AvailableAre you able to produce all documentation (bank statements, taxes, retirement accounts, etc.) to show your assets? This will help ease the risk factors for a lender and help lower the rate.