Applying for an auto loan St. John’s Newfoundland & Labrador is hard enough with all the requirements, but the experience can also be a confusing one for those who aren’t financially savvy. The terminologies used are enough to give you a headache, and not understanding them could lead to penalties. Here are three terms you should know:
Top Loan Terminologies to Remember
- Interest Rate: This refers to the percentage tacked on to your loan’s current balance. It’s charged to your loan and is added at every payment deadline. You want to aim for a small interest rate to help keep your loan manageable. However, there are no fixed interest rates for this type of loan as it depends on where you live. Some states have a fixed rate while others leave it to the lending company to determine.
- Monthly Installment: As the name implies, this term refers to how much you need to pay monthly. The amount is calculated based on the interest rate and payment duration. The amount does fluctuate based on penalties incurred or other circumstances.
- Prepayment Penalty: Also known as an Early Payment Penalty, it refers to the fee a lender charges when the borrower finishes repaying their refinance car loan before the agreed end date. Lenders make money from the interest rates, and closing the loan early reduces their profit. This penalty is designed to offset some of their losses.
Trusted Car Loan Expert
You don’t have to look for a fast loan. Canada Car Cash is here to provide you with the money you require. The company specializes in title loans and offers more money than other lenders. Their interest rates are 70% lower and they have the lowest monthly payments. Sign up on their website or call their toll-free number at 1-844-598-7631.
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