Tag Archives: loans
Bridging Loans – Taking You to Prosperity
Before I start writing the article I would like to make your mind clear about the precise definition of bridging loans, what it is actually and how it will take you to prosperity.
“Bridging loans are a short-term loan used as a way to endow with funding for the purchase of a new property while the borrower expects the sale of an on hand property”.
Off-course it seems risky and it is said that unless all the stars are not in perfect alignment, it can turn a bad luck. But very frankly saying selling of property is not a big deal and if you have property than taking loan on its part is not a big deal. The only thing demanded by bridging loans is that you need to be tricky in co-ordination and purchase and sell of new property and if transaction occurs simultaneously than no words to describe your stars.
A Bridging Loans also known as commercial bridging finance makes these types of transaction easy and possible. It not only helps you with instant money but also helps you keeping away from getting stuck by financial crisis. By taking this loan borrower need not to pay for two mortgages and the best part of these loans is that you can take it for commercial purpose and also for personal purposes.
Features of these loans
These loans are short term in nature
The application process for borrowing these loans are more or less similar as of the other loans.
When you are planning to have bridging commercial loans it is preferred that you should opt for private lender than commercial banks. The reasons are many, bridging loans are short term loans so it is better to have someone who charges least interest, secondly lender can easily give you loans with minimal paper work. The need for commercial bridging loans start or can be guessed little early so it is suggested that you should go for pre approval of these loans.
Bridging Loans get paid back in the form of only interest. This means you get the entire amount from the lender, keep on paying the monthly interest until your backed property is not sold out. Once the transaction is complete, give away the handy principal amount back to the lender. So, in the case of repayment option in bridging loans principal payment is one time lump sum payment.
These loans are good for both the parties as in the case lenders also need not to worry about defaulter because the money seeker is obligatory to put up security or guarantee to secure the loan. This is normally in the form of an additional part of property.
But on the part of borrower, I want to make the point clear that the lender will still systematically evaluate your credit history. And I think it is genuine on its part also because any one will undergo the same procedure because of the level of risk he/she is taking. But not to worry poor credit is not an obstacle.
Federal Student Loans vs. Private Student Loans (Page 1 of 2)
Few students can afford to pay for college out of their savings, so they use student loans to pay for school. Two major categories of student loans include federal loans and private loans. Because we believe that it is important to understand your education-funding options, this article investigates the difference between federal and private student loans.
These days, there are very few students who can afford to pay for college without some form of education financing. Two-thirds of undergraduate students have some debt, while 88% of law students need to borrow to finance their education. A typical undergraduate may graduate with more than $20,000 of debt, while graduate students may have significantly higher indebtedness. Law school students may graduate with an average of $80,000 in student loans. Typically, students have acquired both federal and private debt, but what are the differences between these types of loans? And is one better than the other? Read on for an explanation of both categories of student loans.
Many students rely on federal student loans to help finance their education. The most common federal loan is a Stafford Loan. These may be issued directly from the government to the student, or they may be issued by a private lender, such as a bank or credit union, belonging to the Federal Family Education Loan Program (FFELP). Either way, these loans are guaranteed against default by the federal government.
Something else to remember about Stafford Loans is they may be subsidized or unsubsidized. If you are eligible for a subsidized Stafford Loan, the government will pay the interest while you are in school. Subsidized Stafford Loans are generally given to students who can demonstrate financial need. If you receive an unsubsidized Stafford Loan, you will be responsible for paying all of the interest, although you may have the payments deferred until after graduation. If you choose to defer paying the interest until after graduation, the interest will be capitalized, or added to the loan amount. To qualify for an unsubsidized Stafford Loan, you do not need to demonstrate financial need.
The amount of your Stafford Loan will vary depending on your year in school. However, graduate students may borrow up to $18,500 each year (with $8,500 being subsidized) with a combined limit for graduate and undergraduate federal loans of $65,500 for dependent students. If you are an independent student, the cumulative limit you may borrow is $138,500 for your graduate and undergraduate studies.
Stafford Loans have variable interest rates, based on the 91-day T-bill, and this interest rate is adjusted each year on July 1. Stafford Loans have an interest rate cap of 8.25%. All lenders offer the same base rate for Stafford loans because the interest rate is predetermined by the government, although many lenders offer payment incentives and/or discounts to help you reduce your interest rate further. Another benefit of federal loans is you may lock in a fixed interest rate if you choose to consolidate your federal student loans. That way, you will not be affected by adjustments in the interest rate each year.