A prime loan is a loan that is extended by a lender to a borrower with a strong credit history. Prime loans typically have lower interest rates than non-prime loans, and are thus considered to be more advantageous for borrowers.
What are the two main forms of auto financing?
The two main forms of auto financing are bank loans and dealer financing. Bank loans are usually the best option, as they typically have lower interest rates than dealer financing. However, dealer financing can sometimes be more flexible, so it's important to compare the two options before making a decision.
Can you pay off a 72-month car loan early?
Yes, you can pay off a 72-month car loan early. You may want to do this if you have the money available to pay off the loan in full, or if you want to reduce the amount of interest you will pay over the life of the loan. To pay off your loan early, you will need to contact your lender and request a payoff quote. This quote will include the amount of money you need to pay in order to pay off the loan in full, as well as any prepayment penalties that may apply. Once you have this information, you can make a decision about whether or not paying off your loan early is the right choice for you. What is the prime rate called? The prime rate is the interest rate that banks charge to their most creditworthy customers. It is used as a benchmark for other loans, such as those for small businesses and home mortgages. The prime rate is also known as the prime lending rate. What are the 4 types of loans? There are four types of loans: secured, unsecured, fixed-rate, and variable-rate.
A secured loan is one that is backed by collateral, such as a home or a car. If you default on the loan, the lender can seize the collateral. An unsecured loan is one that is not backed by collateral. If you default on the loan, the lender can take legal action against you but cannot seize your assets.
A fixed-rate loan has an interest rate that remains the same for the life of the loan. A variable-rate loan has an interest rate that can change over time, depending on market conditions. What does prime and subprime mean? Prime and subprime are terms used to describe the creditworthiness of borrowers. Prime borrowers are those with strong credit histories and high credit scores. Subprime borrowers, on the other hand, have weaker credit histories and lower credit scores.
Lenders use these terms to determine the riskiness of a borrower and the interest rate they will charge. Prime borrowers are seen as low-risk and are offered lower interest rates. Subprime borrowers are seen as high-risk and are offered higher interest rates.
The terms prime and subprime can also be used to describe the type of loans that borrowers qualify for. Prime loans are loans offered to prime borrowers at prime interest rates. Subprime loans are loans offered to subprime borrowers at subprime interest rates.