How does a down payment affect my auto loan?
A down payment is an initial, upfront payment you make towards the total cost of the vehicle. None Your down payment could be cash, the value of a trade-in, or both. The more you put down, the less you need ...
What is a loan-to-value ratio in an auto loan?
The loan-to-value ratio is the amount of your loan divided by the vehicle’s actual cash value. Lenders use this formula when deciding whether to lend you money for a car or vehicle. When shopping for a car or vehicle, the ...
How does a lender decide what interest rate to offer me on an auto loan?
An auto lender considers several factors – including your credit score, your credit history, income, debts, and down payment – when deciding what interest rate to offer you. Auto lenders will generally consider a number of factors when they’re ...
What should I know before I shop for a car or auto loan?
By making several important financial decisions before you shop for a car, you can ensure you’re getting the best interest rates and loan terms for your budget. There are several important questions to ask before you purchase a car or ...
How much can I afford to borrow for a car or auto loan?
Figuring out how much you need to borrow for an auto loan starts with weighing all the potential costs associated with car ownership and how much you can comfortably afford. When shopping for a car, it’s tempting to calculate your ...
What is private mortgage insurance?
Private mortgage insurance (PMI) is a type of mortgage insurance you might be required to buy if you take out a conventional loan with a down payment of less than 20 percent of the purchase price. PMI protects the lender—not ...
What is a loan-to-value ratio and how does it relate to my costs?
The loan-to-value (LTV) ratio is a measure comparing the amount of your mortgage with the appraised value of the property. The higher your down payment, the lower your LTV ratio. None Mortgage lenders may use the LTV in deciding whether ...
How can I figure out if I can afford to buy a home and take out a mortgage?
Focus on a mortgage that is affordable for you given your other priorities, not how much you qualify for. Lenders will often tell you how much you are qualified to borrow – that is, how much they are willing to ...
