Most people will take out at least one loan in their lifetime. In this article, we will talk about 3 common loan types that you may need. Always remember before taking out a loan that your credit score matters and make sure that you weigh your options.

 

 

Personal loans

Personal loans are loans that you take out that can be used for your personal needs. There are a variety of reasons why a person might take out a person loan. For example, you can get a personal loan for a family vacation, home improvement projects, major purchases, adoptions, and more. With a personal loan you will have a fixed rated. This means that every month you will know exactly how much you will be paying. Fixed rates are great if you don’t want to get surprised with an interest rate increase. If you have fair credit, then getting a personal loan may be difficult. I recommend increasing your credit score to something above 650. With that said, there are many loan companies that are willing to accommodate those that do not have the best credit. For example, Lending Club requires their borrowers to have a minimum credit score of 600. Also, Avant requires you to have a minimum credit score of 580. However, one thing to take into consideration is that with a lower credit minimum requirement there may be a lower limit that you will be able to borrow.

 

 

Student loan refinancing 

When you refinance your student loans you will be able to get a new student loan at a new rate. If you are paying too much on your student loans, then refinancing might be a great option for you. When you choose to refinance your student loan you can either choose fixed or variable rates. I explained in the above paragraph that fixed rates are predictable. Variable rates are the exact opposite. Variable rates are always lower than fixed rates. However, your interest rates are not going to be stable. They have the potential to increase or decrease. The rate option that you choose is depending on if you are willing to take the risk or not. The most popular online student loan refinancing company is SoFi? Is SoFi worth it? The answer is yes! There are a plethora of things to look forward to with SoFi. Unlike other lenders SoFi does not have any fees. No origination fees, no prepayment penalty, and no late fees. Another thing that you will love about SoFi is that they offer an unemployment protection program. This is great if you were to ever lose your job. With the unemployment protection program SoFi will temporary pause your payments to help you  to get back on your feet and they will even help you to find a new job.

 

 

Mortgage loan

A mortgage loan is a loan given by a mortgage lender to help a family to finance a home. This might be the largest loan that you will ever take out. Mortgage loans are usually paid off within 15 to 30 years. Always do your research before you take out a home mortgage loan. If we’re honest, we make a habit of looking at the mortgage lender that gives us the lowest interest rate, but that rate can be a result of a number of factors. Also, always remember that lower payments now can mean more payments in the future and a higher total cost. Choose the rate that best fits your family wisely. The last thing I want to remind you is to make sure that you can afford the home. If you borrow too much you will have to take on a mortgage that is too much for you. This can be harmful to your family especially if you were to ever lose your job. We all want our dream home, but if you can’t afford your dream home, then there is nothing wrong with holding off on your dream home.

A good mortgage loan option is Quicken Loans. Quicken Loans is the most popular lender in the U.S. One thing that I love about Quicken Loans is Rocket Mortgage. Rocket Mortgage is the online experience of Quicken Loans. Rocket Mortgage makes the loan process easier than ever before. With Rocket Mortgage you can add your financial information digitally instead of sending it in. You will no longer have to wait months to find out if you are approved. With Rocket Mortgage you will be able to lock up your interest rates for up to 90 days.