If you are in need of a lot of money for any given purpose (perhaps $25,000 or more), then you will usually be given the option of taking out a secure loan; if not, then the arrangement would be similar in the sense that upon securing the loan, you will need to take it out against your home or some other form of collateral. You may also be offered additional options apart from a secured loan, such as refinancing your mortgage or a home equity release, where you would free up some of the equity you have in your home. That might put you in a bit of a quandary -- you want to borrow a larger amount of money and want to extend the life of loan, but you are only likely to qualify for such a loan if you have some sort of collateral or security you can place against the loan, such as your home or a newer automobile, but usually a home.
You must also consider why you are taking out such a loan to begin with -- ask yourself why and assess your intentions. Let's put it this way -- in short, if you want to take out a loan whose term is ten years or longer, it's not practical if you are to use this for making less important purchases, even more so if the loan's total cost isn't expected to the increase the value of your property or anything you own. We would be referring to things such as vacations, entertainment systems, furniture, other appliances, etc. Appliances would only depreciate in value over a period of time, and nobody in their right mind would want to pay for a trip to the Caribbean, or still be paying for it ten years after the fact!
However, home improvement (new furniture or appliances, as illustrated above, is covered here) might be considered a suitable purpose for the loan, provided it is likely to cause your home's value to appreciate in the long run. On the other hand, if you have a lengthy LOL you just might need it to increase the amount of revenue generated especially if you are self-employed; however you must definitely be sure that you have a sound business plan and an outlook for the future, but just need an extra infusion of capital to make the business thrive.
You would also have to take a few other things into consideration when mulling over a decision to apply for a long-term loan, such as the prevailing interest rates; it's best to apply for such a loan when these rates are low and expected to stay low. You may also need to consider a variable or tracker rate loan to take into account fluctuations in interest rates. However, one of the "miscellaneous" considerations you have to seriously give pause to would be whether your financial status in itself is stable and likely to remain stable, or better yet improve in stature as the LOL progresses.
You should definitely be sure you are only borrowing what you need. It is downright frivolous to take out, oh I don't know, perhaps an additional $5,000 in addition to your $25,000 loan if it isn't at all necessary. Do not borrow a penny over what you actually need.
Consult a third-party broker with skills and experience and he/she will help you weigh all these issues and guide you towards the right path, all without having to pay.
You must also consider why you are taking out such a loan to begin with -- ask yourself why and assess your intentions. Let's put it this way -- in short, if you want to take out a loan whose term is ten years or longer, it's not practical if you are to use this for making less important purchases, even more so if the loan's total cost isn't expected to the increase the value of your property or anything you own. We would be referring to things such as vacations, entertainment systems, furniture, other appliances, etc. Appliances would only depreciate in value over a period of time, and nobody in their right mind would want to pay for a trip to the Caribbean, or still be paying for it ten years after the fact!
However, home improvement (new furniture or appliances, as illustrated above, is covered here) might be considered a suitable purpose for the loan, provided it is likely to cause your home's value to appreciate in the long run. On the other hand, if you have a lengthy LOL you just might need it to increase the amount of revenue generated especially if you are self-employed; however you must definitely be sure that you have a sound business plan and an outlook for the future, but just need an extra infusion of capital to make the business thrive.
You would also have to take a few other things into consideration when mulling over a decision to apply for a long-term loan, such as the prevailing interest rates; it's best to apply for such a loan when these rates are low and expected to stay low. You may also need to consider a variable or tracker rate loan to take into account fluctuations in interest rates. However, one of the "miscellaneous" considerations you have to seriously give pause to would be whether your financial status in itself is stable and likely to remain stable, or better yet improve in stature as the LOL progresses.
You should definitely be sure you are only borrowing what you need. It is downright frivolous to take out, oh I don't know, perhaps an additional $5,000 in addition to your $25,000 loan if it isn't at all necessary. Do not borrow a penny over what you actually need.
Consult a third-party broker with skills and experience and he/she will help you weigh all these issues and guide you towards the right path, all without having to pay.
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