Car Loan Calculation Basics and the Three Factors Affecting Your

Car Loan Calculation Basics and the Three Factors Affecting Your Loan

Borrowing money to purchase a new car can be estimated using a car loan calculation. It is important to estimate the monthly payments that you will ultimately be responsible for when paying back the car loan.

There are three basic factors to think about when shopping for a new loan and are used in the car loan calculation: interest rate, loan principal and loan period. Knowing these three items will enable you to understand how much loan you are able to obtain. Using these to make your loan calculation will help you establish your budget for making the monthly payments.

Finding out the answers to these three questions is as simple as asking your loan officer or going online. Most online lenders have a simple car loan calculator you can access from their web site that will help you determine how much loan you can afford. You can also call lenders and ask them what their lending rates are based on how much you are borrowing and how long you will take out the loan.

Remember that most lenders will want you take out as much loan as you can possibly afford since they will make more money the larger the loan is that you receive. These car loan calculations can give you an estimate of the total costs which you can use to compare against your total income. This will help you determine how much loan you can afford.

To understand the loan process fully, you need to learn and understand what the loan terms refer to. This will help keep your budget on track as you are calculating your loan.

Car Loan Calculation: The Loan Principal

In car loan calculation, the loan principal is the amount of money you originally borrowed. Loan principal is a term used in finance that refers to the original amount of the dept or the original amount of money borrowed. Your total interest charges at the end of the loan period depend on the amount of the loan principal and the loan period. The more principal you borrow the more money you will ultimately be paying back over the course of the loan.

In some cases, the loan principal is used to refer to the amount of money left or still owed after the debt has been partially paid. In this case, the loan principal is sometimes referred to as the remaining loan principal or outstanding balance. With each monthly payment, you slowly but steadily chip away at the total loan principal until the balance is paid off.

In car loan calculation, it is important to know that a good percentage of your monthly payments in the first few months are used to cover the interest costs. Only a small percentage is used to pay off the loan principle. This is most commonly seen in amortization loans. As the loan matures more of your payments will go towards paying down the principal and less to pay the interest of the loan. This process continues until the remaining principal balance is paid off.

Car Loan Calculation: Interest Rate

The interest rate is usually expressed in percentage and is referred to as the amount of money charged outside the loan principal amount. The lower the interest rate the lower your monthly payments.

Car Loan Calculation: Loan Period

The loan period refers to the life cycle of the loan, the length of time the borrower agreed to pay back the lender. The longer the loan the more expensive the loan will be.

Car loan calculation is an important part of purchasing a car loan. You can determine how much your loan is going to cost you by utilizing good car loan calculation.

Anyone Can Qualify For A Major Credit Card

You may have seen the following ads or something similar:

Separated? Divorced? Bankrupt? Widowed? Bad Credit? No Credit?

No Problem

Make the call NOW and get the credit you deserve!

– Even if you’ve been turned down before, you owe it to yourself and your family.

– Your major credit card is waiting.

If you have no credit or a poor credit history, this ad may appeal to you. Using a secured credit card can be an effective way to build or re-establish your credit history. Be aware, however, that some marketers of secured credit cards make deceptive advertising claims to get you to respond to their ads.

Secured and unsecured credit cards work the same way; both can be used to pay for goods and services. A secured card requires security for your line of credit; an unsecured card does not. The savings account for a secured card may range from a few hundred to several thousand dollars. Your credit line will be a percentage of your deposit, typically from 50 to 100 percent. Usually, a bank will pay interest on your deposit.

Also, you may have to pay application and processing fees that sometimes amount to hundreds of dollars. Before you apply, be sure to ask what the total fees are and if they will be refunded if you are denied a card. A secured credit card also often requires an annual fee and has higher interest rates than unsecured cards.

The Federal Trade Commission has taken action against companies that deceptively advertise Visa and MasterCard through television, newspapers, and postcards. The ads may offer unsecured credit cards, secured credit cards, or not specify a type of card. The ads typically are phrased to make you believe you can get a credit card simply by calling a telephone number listed in the ad.

Sometimes the number is not toll-free. A “900” number service, for which you will be billed just for making the call, may instruct you to give your name and address to receive a credit application, or it may give you a list of banks offering secured cards, or direct you to call another “900” number at an additional charge to get more information. Be aware that deceptive ads often leave out important information.

They often omit the cost of the “900” telephone call, which can range from $2 to $50, or more.

The ads often do not mention a required security deposit, and application and processing fees for the secured card.

The ads frequently fail to say anything about income and age requirements.

The ads may not mention the annual fee for the secured card and a higher than average interest rate on any balance.

To avoid being victimized by a secured credit card marketing scam, look for the following signals.

Beware of offers of easy credit. No one can guarantee to get you credit. Even if you maintain a sterling record on your account, that is only one factor other creditors will consider. Any unfavorable history will be considered also.

Be wary of credit cards offered by “credit repair” companies or “credit clinics.” These businesses also may offer to clean-up your credit history for a fee. However, you can correct genuine mistakes or outdated information yourself by contacting credit bureaus directly. But remember; only time and good credit will repair your credit report if you have a poor credit history, and any suggestion that you acquire a new social security number or other federal ID may be illegal.

Reduce your tax payments

Reduce your tax payments by claiming an interest payment deduction.

If you are busy paying off your student loans, the last thing you want to do is to pay interest on the money that you’re about to give right back to the government. Luckily, in a lot of cases you should be able to deduct the amount of interest that you paid on your student loans. Deducting interests on student loans is not very difficult to do as long as you make sure that you meet the requirements for claiming this particular deduction on your taxes.

First of all, you have to have the proper filing status – which in this case means that you can be of any filing status except for if you are married and still filing your taxes separately. There is no explanation given as to why this particular status is exempt, however, this is still important to take note of before you waste your time trying to fill out a deduction that you cannot claim.

The other thing that is necessary in order for you to claim that deduction is that you cannot have another person claim you as a dependent or a tax exemption on their own tax forms. For most people who have already graduated from college and are trying to pay off their student loans, this should not be too much trouble. However, you should still make sure that nobody in your life is still claiming you as a tax deduction.

Finally, you have actually pay the interest on your student loan before you can claim it as a deduction. This also only works if you are the only person who has an actual obligation to pay off the loan. Therefore, you will not be able to claim a deduction if you are paying interest on a loan that both you and your parents owe money on, or on a parent PLUS loan.

You can also claim interest as a deduction if you are paying off the interest on a student loan that is owed by your dependent. However, in this case you can only deduct the payment if you are actually the person who is obligated to pay off the loans. You also need to claim an exemption for that dependent on your tax return.

Home Equity Loans At A Glance

When an individual borrows money using the equity in their home as collateral, the transaction is known as a home equity loan. Many wonder about the differences between home equity loans and home equity lines of credit. Although both use the homes equity as collateral for the loan, the difference is that a home equity line of credit is an open end loan that is similar to a credit card in that it can be used more than once as the principal balance is reduced by payments. Home equity loans, on the other hand, involve the applicant receiving one lump sum amount without the ability to borrow additional funds.

There are a number of benefits to obtaining a home equity loan, including the possibility of increasing a homeowners tax deduction. Many individuals request a home equity loan in order to pay off their credit card bills. This method, however, is open to debate among financial experts as to whether or not the choice is a good one. The reason is because credit cards are unsecured in that there is no collateral securing the loan, which means they can often be settled for a lower balance if financial hardships arise in the future. If you use your homes equity for the collateral in a loan, on the other hand, that loan is instantly secured and failure to repay it on time may result in the loss of your home. In essence, when you request a home equity loan in order to pay off your high interest credit cards, you are turning unsecured debt into secured debt.

When it comes time to determine your homes equity, the process is quite simple. You take the balance of the remaining mortgage and subtract it from the appraised value of your home. An example is a home that is valued at $300,000 and has a remaining mortgage balance of $100,000. The homes equity, in this case, would be $200,000. When applying for home equity loans, lenders often require a written appraisal in order to verify the homes value. In addition, several other factors will determine whether or not the loan application is approved. Among them, the borrowers past credit history, current employment, wages and debt will all be considered prior to granting a home equity loan.

Among the most sound reasons for requesting home equity loans are to finance a college education, pay for necessary medical expenses or even to purchase a second home. When comparing rates for home equity loans, take the time to shop around and find the best deal possible before signing on the dotted line.