Friday, June 08, 2007

Thoughts on loans and borrowing money

Whether you are going to star a new business, building or remodelling your house or even just paying some of the bills, from time to time you will need to get a loans. Whether you choose to use your line of credit or take advantage of some equity you have, you will want to know what you are getting yourself into before you sign the deal.

Several things you need to consider.

1. How is the interest rate - is that best rate for you? Ask several banks for quotes and then do the same work with some brokers, you will get an idea of the price range, but don’t be afraid to ask them ‘whether they can do better or not’, after all, it is your money.

2. Consolidate your loan, because it will make you easier to pay for one bill instead of 4 or 5 bills every month.

3. Think about lock the loans in a certain rate, but the risk is if the rate continue drop after you lock it in.

All in all, the more details and things you can think about, the better deal you could get.

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