There are many different reasons why you might take out a loan—you want to consolidate debt, increase cash flow, start a new business, or even take control of your personal expenses. For every “use of funds” out there, there’s a lender who offers a slightly different solution to help you achieve your financial goals. That’s why it’s important to ask questions upfront and understand the underlying features of the loan before moving forward with the application process.
One feature that could have a significant impact on your financial health is whether the loan offers a fixed or adjustable rate. Here’s what you need to know about each type before taking out your next loan.
Based on these definitions alone, it’s clear why a fixed-rate loan is the better option. Here are two more reasons why you should pursue a lender who offers this loan type.
One of the primary reasons people consider taking a loan is to improve their financial well-being—instead of worrying about their finances each month. With a fixed-rate loan, your monthly payment won’t change unexpectedly, affect cash flow in unforeseen ways, or interrupt your day-to-day operations.
Not knowing when or how much your interest rate will change can make financial planning and budgeting almost impossible. A fixed-rate solution provides consistency and reliability over the life of the loan.
Understanding how different loan types can affect your overall financial situation is important in creating financial stability. Eliminate uncertainty around your monthly payment and make financial planning simpler by pursuing a fixed-rate loan with a financial partner who has your best interest in mind. Explore our transparent loan process and estimate your monthly payment today.
If you’re in the market for personal financing or want to talk to a loan specialist to find out what our financial solutions could do for you, call our team today at 866.280.5476. To get a quick glimpse at how low your monthly payment could be, use our online Payment Estimator below.
No application fees, commitment, or impact on personal credit to estimate your payment.