Credit News

The Ultimate Loan Scenario Comparison Tool #car #loan #payment #calculator

#loan comparison

Aburt’s “Ultimate” Loan Comparison Tool

Hi, I’m Dr. Andrew Burt. I’m CEO of TechSoft. a custom software/web design company. I wrote this loan comparison tool when my family was looking for a loan, and I realized how difficult it was to compare loans accurately. All the loan comparison tools I found on the net were poor they didn’t take into account a lot of really important factors that could change the outcome, and cost people needless money.

Since I wanted to know the right answer, I wrote this tool to find out. Then I figured others could benefit from it too, so I put it up on the web.

The kinds of questions this page can help you with are: Which loan is better? Should you refinance your mortgage? (Lower monthly payments aren’t the whole picture.) Buy vs. lease? Pay cash vs. borrow? — all these questions have the same thing in common: There are so many factors they’re hard to decide. Moreover, one choice may be better only after a certain number of years — if you’ll sell before then, you made the wrong choice. Unfortunately, the wrong decision can cost you thousands of dollars.

I wrote this software to take all the variables into consideration to answer the question: Which is better for your bottom line? That is, which scenario maximizes your total net worth? The web pages below will show you the answer, month by month.

So — What’s your goal? Click the link below to get to the worksheet:

SBA Loans – The Ultimate Guide #classic #car #loans

#sba loans

SBA Loans The Ultimate Guide

Share this post

SBA Loans are designed for profitable businesses that do not have enough collateral to qualify for a commercial loan.  They are partially backed by the SBA which allows lenders to make loans to businesses that they would otherwise not.

Apply for an SBA loan today! We recommend smartbiz  which can provide answers on 7A loans in under, 30 minutes.

In this article we cover the 4 primary types of SBA loans and what you need to know before considering them for your business. If you decide that an SBA loan may be right for your business. then you can read our step by step guide on how to apply for an SBA loan here .

SBA Loans v. Normal Loans

While SBA loans are not made by the SBA, the SBA sets the guidelines for the approval of  these loans, and guarantees part of their repayment (up to 85 percent for loans up to $150,000 and 75 percent of loans of more than $150,000). This guarantee lowers the risk for SBA lending partners, which include banks, community development organizations, and microlending institutions.

Because the SBA assumes some of the loan risk, SBA loans often have lower interest rates, longer repayment periods, and other more favorable terms than non-SBA loans.  Because part of the payment is guaranteed by the SBA, you may be able to get an SBA loan when you would not be able to get a normal loan.

The Personal Guarantee

All SBA loans require personal guarantees for every owner of at least 20% of the business, as well as individuals in key management positions. A personal guarantee means that if the company does not pay, then you are personally liable to pay the loan.  Your home may be included as collateral, but this depends on the value of the assets already pledged as collateral and the size of the loan.

If the combined assets of your company and your personal finances do not collateralize 100% of the loan, you may still be able to get an SBA Loan. However, the more collateral you have the more likely you are to get the loan.  The SBA may require a professional appraisal of both your business and personal assets.

For more information on SBA loan collateral and the personal guarantee, see this page .

Types of SBA Loans

The SBA operates four primary loan types:

  1. The 7a General Small Business Loan
  2. The 7a SBA Express
  3. The CDC/504 Real Estate and Equipment Loan
  4. Disaster Loans

These loan programs have different purposes and terms, which this guide will explore in order to help you understand which SBA loan is best for you and your small business.

The 7a General Small Business Loan

The most common type of SBA loan is the 7a General Small Business Loan, which is appropriate for most types of business. One well known use of a 7a loan is for the purchase of a franchise.  7a loans can also be used for a wide range of other purposes, such as long or short-term working capital, to purchase equipment and real estate, construction, business acquisition, and refinancing (for a comprehensive list of 7a loan uses, see this article ).

There is no minimum loan amount for the 7a, and the maximum is $5 million. For 2012, the average loan amount was $337,730. As far as loan maturity, the SBA has set the guidelines of 25 years for real estate, up to 10 years for equipment, and generally up to seven years for working capital.

Apply for a 7A loan today! We recommend smartbiz  which can provide answers for 7A loans in under 30 minutes.

The 7a SBA Express

One of the major drawbacks of the standard 7a SBA loan is that the application processing can be slow and drawn out. In order to address this problem, the SBA offers an expedited processing service called the 7a SBA Express loan, which guarantees a response to an application within 36 hours. The 7a Express generally follows the same guidelines as the standard 7a, but the maximum loan amount is $350,000. (For more information on the 7a SBA Express, see this article .)

7a Interest Rates:

There is no defined interest rate on 7a loan, since the actual interest rate is negotiated between the applicant and lender, subject to an SBA maximum.  However, the maximum interest rate you will pay on a 7a loan is likely to be several percentage points lower than an equivalent non-SBA loan.

7a loans can be either be fixed rate, have a single rate for the life of the loan, or a variable rate which resets based on changes in market interest rates on a pre-determined schedule. The maximum rates are composed of two components a base rate and additional mark-up. The maximum allowable mark-up is based on the size of the loan and the loan term.

The base rate is based on the market conditions for borrowing money. While technically there are three different base rates, they all should be relatively close together. We suggest looking at the prime rate which is published every day in the Wall Street Journal. The table below shows the maximum interest rates that you would pay based on the prime rate at the time this article was written.

7a Maximum Interest Rates (Using Prime Base Rate)

The ultimate guide to picking the best student loans for you

#best student loans

The ultimate guide to picking the best student loans for you


As college tuition costs rise, more students are taking out loans to help pay for school. Of students graduating college in 2013, 69% had student loans, with an average debt amount of $28,400 per student, according to the Institute for College Access Success. At one in five schools, that amount was at least 10% higher.

Grappling with significant debt as you enter the real world poses financial challenges, especially if you have trouble finding a well-paying job after graduation. This makes it crucial to borrow only what you need and to choose the best loans for your situation. The student loan process may seem overwhelming at first, so use this guide to better understand how it works and become familiar with the types of loans available.

The student loan process

Start by completing the Free Application for Federal Student Aid. available online You must complete it each year to be eligible for federal loans, grants and scholarships.

The government sends a copy to the schools to which you’re applying. The school’s financial aid office determines your aid package and will send you a financial aid award letter .

Jodi Okun, owner of College Financial Aid Advisors, says this letter has two sections: one for gift aid, containing free grants and scholarships (which students shouldn’t turn down), and one for loans.

You may be offered one or more federal loans. “You will be allowed to accept or decline any of the aid on the award letter,” says Vicki Hendrickson, director of financial services at The University of Tulsa.

To borrow responsibly, “look to the lowest-cost options first and maximize grants, scholarships, family contributions, state aid or institutional aid,” Hendrickson says.

RELATED: The fast-forward way to pay off your student loans

Consider accepting federal work study or tuition payment plans, if available. Next, go for any federal loans offered. If those options combined won’t cover all costs, then pursue credit-based loans. We’ll go into more detail on loan types below.

If you were offered federal loans and want to accept them, you must go online and activate them, Okun says. Then you’ll sign a master promissory note detailing the loans’ terms and complete brief online loan counseling. The money then goes from the government to your college. However, if you have a credit from a loan on your school bill, meaning you accepted more loans than were needed for tuition, you can get a refund and use it for living expenses, Okun says.

Too much jargon? Check out NerdScholar’s Finance Glossary for Students .

Types of federal loans

Federal loans have fixed interest rates that are typically lower than private loans. Note that all except PLUS loans have annual borrowing limits.

  • Federal Perkins Loans: Subsidized loans with low interest rates intended only for students with significant financial need. Not all schools offer them. Interest isn’t charged if a student is in school half time, and there’s a grace period of nine months before repayment is required.
  • Direct subsidized loans (aka Subsidized Stafford Loans): For students with demonstrated financial need. Interest isn’t charged while a student is in school or during deferment periods, and payments aren’t required until after graduation.
  • Direct unsubsidized loans (aka Unsubsidized Stafford Loans). Not based on financial need; your school decides how much you can borrow by factoring in any other financial aid and attendance costs. Interest is charged at all times and capitalizes during school and deferment periods, though you can defer payments until graduation.
  • Direct PLUS Loans: Credit-based, unsubsidized loans for graduate/professional students (called Grad PLUS loans) and parents of dependent undergraduates (called Parent PLUS loans) who need more money than offered by federal loans. Interest rates are higher, and there is no borrowing limit.

Selecting private loans

When federal aid and family contributions combined won’t cover everything, a small percentage of students take out private loans to fill in the gaps. Experts recommend using loan calculators (like the ones on to determine exactly how much you need and what your repayment plan will look like.

While students can choose any private lender, Hendrickson says, some schools provide a preferred lenders list. She adds that most student borrowers need to apply with a cosigner because they lack credit. This actually benefits you: A qualified cosigner may speed up the application process and give the borrower a better chance of approval and help lower the interest rate,” she says.

When comparing private loans, students should consider many factors, including fees, interest rates and terms, says Andrew Hopkins, vice president of Discover Student Loans. Some lenders charge origination fees, and interest rates for private loans are not fixed as they are for federal loans, he adds.

Hopkins also recommends looking at the number and amount of monthly payments because they will affect the total cost of your loan. Also, find out if you’re allowed to repay loans while in school; doing so can reduce the cost of the loan.

Hendrickson says borrowers should also compare requirements for eligibility, because some private loans require you attend school a certain amount of hours or make certain grades. She also recommends looking for interest rate discounts and learning about repayment options.

Student loans may be complicated, but learning how the process works and which loans are ideal for you is a small price to pay for money to fund your college education.

Emily Starbuck Crone writes for NerdWallet. a website that helps consumers make smarter financial decisions. NerdWallet is a USA TODAY content partner providing general news, commentary and coverage from around the Web. Its content is produced independently of  USA TODAY.