Kumaran Dental Clinic Interview Questions and Answers

To reduce interest on a home loan, consider refinancing, making extra payments, improving credit score, negotiating with lender.

• Consider refinancing your home loan to get a lower interest rate.

• Make extra payments towards the principal amount to reduce the total interest paid over time.

• Improve your credit score to qualify for better interest rates.

• Negotiate with your lender to see if they can offer you a lower interest rate or better terms.

Interest rate is the cost of borrowing money, while APR includes additional fees and charges.

• Interest rate is the percentage charged on the principal loan amount

• APR includes the interest rate plus any additional fees or charges

• APR gives a more comprehensive view of the total cost of borrowing

• For example, a loan with a 5% interest rate may have a 5.5% APR due to added fees

Typical fees associated with home loan interest include origination fees, application fees, appraisal fees, and closing costs.

• Origination fees are charged by the lender for processing the loan.

• Application fees cover the cost of processing the loan application.

• Appraisal fees are charged to assess the value of the property being purchased.

• Closing costs include fees for services such as title search, title insurance, and attorney fees.

The current interest rate for home loans varies depending on the lender and market conditions.

• Interest rates for home loans can range from around 2.5% to 5%, depending on factors such as the borrower's credit score, loan term, and type of loan.

• It is recommended to shop around and compare rates from different lenders to find the best deal.

• Interest rates may also be influenced by economic factors such as inflation and the Federal Reserve's monetary policy.

Fixed interest rates remain constant throughout the loan term, while variable interest rates can fluctuate based on market conditions.

• Fixed interest rates provide stability and predictability for borrowers.

• Variable interest rates can change periodically, potentially resulting in lower or higher payments.

• Fixed rates are typically higher than initial variable rates, but may be beneficial in the long run if interest rates rise.

• Variable rates are usually lower initially, but can ...read more

Factors influencing home loan interest rates include economic conditions, inflation rates, credit score, loan term, and type of loan.

• Economic conditions: Interest rates are influenced by the overall state of the economy.

• Inflation rates: Higher inflation rates can lead to higher interest rates.

• Credit score: Borrowers with higher credit scores typically receive lower interest rates.

• Loan term: Shorter loan terms usually have lower interest rates compared to longer terms.

• Type of ...read more