Where to Look for the Best Rates on a New Loan

Sunday, December 1, 2019, 6:00 AM | Leave Comment

If you’re attempting to get a loan, it makes sense to look for a low rate.

Unfortunately, some of the places that are most vocal about offering loans are also those that offer the fewest options.

If you are looking to reduce the cost of borrowing, you may want to look at some of the sources listed below.

Where to Look for the Best Rates on a New Loan

  • New Home Buyer Programs

    If you’ve never owned a home before – or if you haven’t owned a home in two years – some of the best loan programs out there target new buyers. These loans not only have relatively low-interest rates, but they also tend to reduce the amount of the down-payment on a new home significantly. Note that some of these programs may require you to get mortgage insurance or to attend financial literacy classes, but they’re a great choice for those who are looking to buy their first homes.

  • Credit Unions

    Your local federal credit union can also be a great source of low-interest loans. While you may have to live in a certain area to get access to these products, they’re almost always lower-cost than those offered by retail banks. As a bonus, joining up with one of these credit unions will also reduce the fees you need to pay for banking.

  • Online Lenders

    Online lenders are relatively new to the loan game, but they’re already making a splash. Many of these lenders are connected to traditional banks but some do offer much lower interest rates than their parent companies. Though you will need to be careful to ensure that you are borrowing from a reliable source, legitimate online lenders can save you quite a bit of money on your loan.

  • Community Programs

    Finally, you may want to check to see if your community has any loan programs that fit your specific needs. Some rural areas offer home loans that completely erase the need for a down-payment, while others might hand out special loans or grants to fix up homes in targeted neighborhoods. It never hurts to check in with your local government or even with your chamber of commerce to figure out if there are options that can meet your needs.

There are more sources of loans out there than typical banks. If you’re willing to do a bit of searching, you’ll discover lower interest rates and great promotions. Though you may not qualify for every loan, there are loans out there to meet most needs.

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