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What are the eligibility requirements for a loan
Okay, so I’m looking to get a personal loan, maybe around $10,000, to consolidate some credit card debt and finally fix the leaky roof on my house. But I’m a little overwhelmed by all the different lenders and loan types. What are the general eligibility requirements I should be looking at? I know it probably…
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What is the loan term
Okay, so I’m getting ready to take out a loan, specifically for a car, and I’m seeing all these different "loan terms" listed. I’m really confused about what this actually means in practical terms. Like, I understand it’s probably how long I’ll be paying off the loan, but does it affect anything else? Does a…
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What is debt to income ratio
Okay, so I keep hearing about debt-to-income ratio (DTI) when I’m looking at trying to get a mortgage. I’m trying to understand it better because it seems like a big deal. Specifically, can someone explain exactly what it is? Like, what numbers am I actually calculating? I understand it’s about my debt versus what I…
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What are prepayment penalties
Okay, so I’m looking into refinancing my mortgage. I’ve found a rate that’s way better than what I’m currently paying, but I keep seeing this term "prepayment penalty" and it’s making me nervous. What exactly is a prepayment penalty? How does it work? Are there different types? And, most importantly, how do I find out…
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What are loan origination fees
I’m looking at getting a mortgage for a house, and I’m seeing this "loan origination fee" listed on some of the loan estimates. I’m trying to understand what exactly it covers. Is it just a fee the lender charges for processing the loan? Is it negotiable? Are there different kinds of origination fees bundled together?…
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What is loan amortization
Okay, so I’m trying to figure out how loans actually work. I keep hearing about "loan amortization," especially when I’m looking at mortgages or car loans, but I’m still confused. Specifically, I want to know: What exactly is loan amortization? Is it just paying off the loan, or is it something more specific? Why is…
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What is a secured loan
I keep hearing about secured loans, especially when people are talking about mortgages or car loans. But I’m not entirely sure I understand what makes a loan "secured" versus something else. Is it just any loan over a certain amount? Does it mean the interest rate is somehow guaranteed? And what happens if I can’t…
