How Much/Loan Balance This is the amount you are
expecting to borrow, or the amount you have leftover on a loan if you are
calculating the interest rate of the remaining balance. This number is
completely up to you, and it provides you with a way to find out how much you
can afford to borrow based on the monthly payments you can afford as well.
How Long/Loan Term This is how long you want to take to pay
back the loan. Some loans have limited choices, but many lenders offer multiple
payment plans for borrowers. The longer you take to pay it off, the more
interest you are charged over time, but the lower the monthly payments. So there
is often a trade off depending on your particular budget. Credit
Rating/Estimated Interest Rate This is where you either estimated
what your credit score is and, thus, what your interest rate will be. Most
interest rates are based entirely on your credit score. Since scores range
anywhere from 350-850, with 850 being the best, and you have a credit score of 700 you can
assume you will be close to the "Good" rating, but not directly on the
edge so your interest rate will not be the exact minimum. Also, if you know
what your interest rate is but not your credit score, you can get an idea of
what your credit score is by where your interest rate falls on the scale.
Calculating Total Interest Sometimes you will want to
calculate how much interest you will have paid in full over the course of your
loan. If you already have the balance, loan terms and interest rate (and any of
these can be estimated if you are simply curious), you see what the calculated
monthly payment is and multiple that times the amount of months of your loan.
This is the estimated loan term, with years multiplied by 12 to get the
estimated amount of months. Some credit agencies look at credit
scores differently. To get a full quote, click on the "quote" button
and fill out information in the boxes to get quotes from over 100 different
secured loan lending companies. |