Digital News Report – Despite the recent decline in economic conditions, there is some good news. Credit is beginning to loosen-up and loan activity is on the rise.
Many Americans are looking for ways consolidate multiple obligations into one loan. Debt consolidation loans may be on the rise as homeowners and renters are looking for ways to save money and lower their payments. The Federal Reserve says that non-revolving unsecured credit is increasing.
The number of mortgage applications and refinancing activity grew according to the Mortgage Bankers Association (MBA). Seasonally adjusted, applications grew while interest rates continue to decline.
The final interest rate (APR) will depend on several factors including the credit score of the borrower, loan amount and collateral. Secure loans will typically carry a lower rate than non-secured loans.
Banks will encourage borrowers to consolidate loans using their home as collateral. While many financial advisors disagree, there may be tax advantages a lower rate.
U.S. Bank had rates starting at 3.99%. The bank also offers unsecured loans along with equity lines of credit and refinancing. That is a starting rate and customers with bad or poor credit will pay more.
By Tina Brown