Loans

[uophopeful]

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😕 Hey all,

I'm trying to figure out my loan situation: what's the best way to pick a lender? Do you go for no origination/guarantee fees or is it better to opt for interest reduction or getting back a percentage of your principal upon repayment? Thanks for your help!

 

[potent]

Hi. I try to stick with the loans that have the lowest interest rate and interest rate cap. Stay away from the ones without an interest rate cap. You also want to choose one that has no origination fee. About the interest reduction upon repayment, they are all pretty much the same where you have to have a certain number of payments made on-time. It's usually some ridiculous amount like 48 payments made on time and you'll get a certain percent deducted. That's like 4 years of on-time payments that I personally don't think is that important when choosing a loan. I'm pretty new at this loan thing too so I hope I could help a little. Good luck.

 

[uophopeful]

Thank you, potent-that was excellent help. I've decided on Chela, which has no origination fee and also a 1.5% reduction immediatly upon entering repayment (with an extra .25% reduction if you choose automatic payment). Your advice helped a lot!

thanks!