Total Loan Costs vs. Current Loan
Comparing total loan costs with a current loan is relatively easy provided you are aware of the vital things to look for with loan packages. The Total loan costs do not include an application fee, processing fee and closing costs. With so many lenders operating in the market right now, you can reduce your total loan costs. There are number of lenders that do not charge any application or processing fee because their main objective is to increase their customer base. However, once they have reached their target customer numbers, they always have the option of modifying their policies in terms of fees and costs.
What to look for in your current loan
In your current loan, your main emphasis should be on the interest rate that is being charged by the lender. You can save plenty of money in the long run if you manage to get a loan at low interest rates. Apart from interest rates, you also need to take into account the repayment schedule. After all, if the repayment schedule does not match your financial condition, it may be difficult to repay the loan amount on time. Timely payment is important because any delay on your part can have a negative impact on your credit rating.
When selecting any loan package, it is vital to ask your lender clearly how much time to expect to receive and answer for an approval. Stay away from lenders who take more than a week in order to review your loan application. Further, you should also ignore lenders who are demanding too many documents. To get the best possible loan package, get quotes from at least five to ten lenders.
To get the best out of your current loan, consolidation is the way to go. This is extremely useful for individuals who may have had financial difficulties in the past and need to consolidate outstanding loans or mortgages. With consolidation, your monthly installment and current rate of interest can be reduced to one lower payment.
To eliminate the processing fee altogether, take a look at some of the online lenders. It has been noted that online lenders normally do not charge any processing fee because they do not need to pay a hefty amount for overhead and staff. This is not the case with traditional lenders as they employ a full staff in order to process your loan application in a timely manner.