• Home
  • Terms and Conditions
  • Privacy Policy
  • Free VPN
Easyworknet
No Result
View All Result
  • Login
  • Home
  • Contact
  • Business
    • Cryptocurrency
    • Home Improvement
    • Finance
    • Insurance
    • Digital Marketing
  • Technology
  • Lifestyle
    • Relationships
    • Food
  • Health
    • Fitness
    • Exercise
    • Skin Care
    • Sleep and Rest
  • Education
  • Travel
  • Fashion
  • Game
  • Law
  • Career
  • Home
  • Contact
  • Business
    • Cryptocurrency
    • Home Improvement
    • Finance
    • Insurance
    • Digital Marketing
  • Technology
  • Lifestyle
    • Relationships
    • Food
  • Health
    • Fitness
    • Exercise
    • Skin Care
    • Sleep and Rest
  • Education
  • Travel
  • Fashion
  • Game
  • Law
  • Career
No Result
View All Result
Morning News
No Result
View All Result
Home Finance

APR, Interest Rates, And More: A Loan Vocabulary Guide

derek by derek
4 years ago
in Finance
Reading Time: 2min read
0
APR, Interest Rates, And More: A Loan Vocabulary Guide
0
SHARES
5
VIEWS
Share on FacebookShare on Twitter

Are you shopping for a loan or credit card? There are some basic financial terms that you should know.

Only 39% of consumers know what the APR is on their credit cards. That lack of knowledge means that they could be paying an arm and a leg on their balance.

The more you know about interest charges and other basic loan terminology, the more money you can save. Are you ready to go to school and update your loan vocabulary?

Let’s get started!

Loan Vocabulary Words

When you apply for a loan, you need to understand the terms. These are the top terms that you need to know.

Amortized Loan: This is also called an installment loan. The interest and principal amounts are calculated over the life of the loan. This is then divided into equal monthly amounts that you’ll pay. This is common to see with loans from Quickloans like personal loans and auto loans.

APR: This is the annual percentage rate or the interest charges that accumulate in a year. The higher the APR, the more you’ll have to pay in interest.

Interest Rate: The interest rate is similar to the APR. The difference is that the interest rate is on the principle of the loan. The APR may include other costs like origination fees.

Fixed-Rate: A fixed-rate loan is one where you pay the same interest rate throughout the life of the loan, no matter what interest rates are. This is the type of loan you want to get when interest rates are low to lock in that rate for years to come.

Adjustable-Rate: With an adjustable-rate loan, the interest rate that you pay will go up or down with interest rates set by the Federal Reserve. These loans can have a fixed-rate for the first few months or years then the interest rate is reset, making your payments higher or lower.

Loan Terms: This is how long it will take to pay the loan in full with interest and fees. Terms can range from 30 days to 7 years and beyond. Mortgages have 30-year terms.

Additional Fee Terms

You have to read your loan contract very carefully. There are often fees associated with the loan that a lender may forget to tell you about. You don’t want to have to pay more for the loan if you don’t have to.

Prepayment Penalties: Let’s say you get a raise and decide to pay your loan off early. That means less interest you’ll pay to the banks. They make less money, so they’ll charge a prepayment penalty to try to recover those costs.

Origination Fees: These are also called administrative fees. This can be a flat dollar amount or a percentage of the loan.

Understanding Interest Charges and Loan Terminology

A loan can be a great tool to leverage. You can improve your financial position and make a big purchase like a car or a home.

You have to understand the basic vocabulary of loans like interest charges. That will prevent you from getting ripped off or paying more than you should.

If you’re ready for more financial advice, head over to the education section of this site to learn more about managing your finances.

Post Views: 1,210

READ ALSO

PG Program in Finance: Why You Should Consider It?

PG Program in Finance: Why You Should Consider It?

December 28, 2022
Fixed Deposit

Wise Considerations Before Choosing Bonds Over Fixed Deposit

November 23, 2022
crypto

Will shiba inu reach 1 cent by 2025?

August 22, 2022
Forex

5 Best Forex Robot You Can Buy in 2022

May 24, 2022
Tags: Financesfinancial adviceinterest chargesInterest RatesPersonal LoansQuickloans
Previous Post

How to Play Blackjack in a Casino

Next Post

Heading Into Retirement? The Top 4 Medicare Advantage Plans Worth Your Money

derek

derek

Related Posts

PG Program in Finance: Why You Should Consider It?
Finance

PG Program in Finance: Why You Should Consider It?

December 28, 2022
Fixed Deposit
Finance

Wise Considerations Before Choosing Bonds Over Fixed Deposit

November 23, 2022
crypto
Finance

Will shiba inu reach 1 cent by 2025?

August 22, 2022
Next Post
Heading Into Retirement? The Top 4 Medicare Advantage Plans Worth Your Money

Heading Into Retirement? The Top 4 Medicare Advantage Plans Worth Your Money

5 Reasons Why Escape Rooms Make Great Corporate Outings

5 Reasons Why Escape Rooms Make Great Corporate Outings

Common Electrical Issues in Old Homes

Common Electrical Issues in Old Homes

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

How to create your own unique coin?

How to create your own unique coin?

December 8, 2023
10 Strategies for Festive Branding on Social Media Platforms

10 Strategies for Festive Branding on Social Media Platforms

November 29, 2023
Top 7 Sustainability and Innovation Trends in Bristol Real Estate

Top 7 Sustainability and Innovation Trends in Bristol Real Estate

November 30, 2023
Epic Road Trips 101: Planning, Pit Stops, and Panoramic Views

Epic Road Trips 101: Planning, Pit Stops, and Panoramic Views

November 24, 2023
How to Ensure Safe and Effective Aftercare Following IV Therapy

How to Ensure Safe and Effective Aftercare Following IV Therapy

November 22, 2023
The Journey of Wheels: Planning for Long-Distance Vehicle Transport

The Journey of Wheels: Planning for Long-Distance Vehicle Transport

November 22, 2023
How to create your own unique coin?

How to create your own unique coin?

December 8, 2023
10 Strategies for Festive Branding on Social Media Platforms

10 Strategies for Festive Branding on Social Media Platforms

November 29, 2023
Top 7 Sustainability and Innovation Trends in Bristol Real Estate

Top 7 Sustainability and Innovation Trends in Bristol Real Estate

November 30, 2023
Epic Road Trips 101: Planning, Pit Stops, and Panoramic Views

Epic Road Trips 101: Planning, Pit Stops, and Panoramic Views

November 24, 2023
How to Ensure Safe and Effective Aftercare Following IV Therapy

How to Ensure Safe and Effective Aftercare Following IV Therapy

November 22, 2023
The Journey of Wheels: Planning for Long-Distance Vehicle Transport

The Journey of Wheels: Planning for Long-Distance Vehicle Transport

November 22, 2023

About Us

For Authors: Easyworknet is a tech-related and guest post-friendly blogging platform. We are ready to serve you information through our website. Here you can read and write whatever you want and share your valuable thought with others to help them grow with knowledge. You can help our readers by publishing an informative and quality guest post. Publish anything except spam…Happy Guest Blogging..!!

🙂

Business

How to create your own unique coin?

December 8, 2023
How to create your own unique coin?

To date, a positive trait has been the constant exploration of innovation as it brings inherent benefits. If you are...

Read more
by sweety
0 Comments
Business

How to create your own unique coin?

December 8, 2023
Tips

10 Strategies for Festive Branding on Social Media Platforms

November 29, 2023
Real Estate

Top 7 Sustainability and Innovation Trends in Bristol Real Estate

November 30, 2023
  • Home
  • Terms and Conditions
  • Privacy Policy
  • Free VPN

Easyworknet © Copyright 2023, All Rights Reserved.

No Result
View All Result
  • Home
  • Contact
  • Business
    • Cryptocurrency
    • Home Improvement
    • Finance
    • Insurance
    • Digital Marketing
  • Technology
  • Lifestyle
    • Relationships
    • Food
  • Health
    • Fitness
    • Exercise
    • Skin Care
    • Sleep and Rest
  • Education
  • Travel
  • Fashion
  • Game
  • Law
  • Career

Easyworknet © Copyright 2023, All Rights Reserved.

Welcome Back!

Login to your account below

Forgotten Password?

Create New Account!

Fill the forms below to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In