The Top 5 Common Bank Loans- Financial Tip Friday- opens outside the box thinking for future monetary needs.
Sometimes there’s a need for money and the anxiety of processing the need inhibits the realization that there is more than 1 type of loan! Here are the Top 5 most common types of bank loans.
- With an installment loan, you repay the loan back to a bank over a specific period of time (term) with set monthly payments. First National Bank of Dennison offers secured and unsecured (signature) loans. Normally used to purchase cars, boats, RVs.
Loan officers work closely throughout the entire building process to make sure that the construction of a custom house or commercial space is completed with proper coordination between the customer, builder, and bank. After construction is completed, mortgage lenders are able to facilitate the transition to a fixed (or variable rate) mortgage.
Loans can be secured or unsecured for businesses with customized payment terms to the specific needs of each business. The bank also offers revolving lines of credit to smooth business cash flow and fund seasonal cash requirements. All variable rate loans are tied to Prime.
Fixed & Variable Rate Mortgage Loan
- Fixed rates are one rate for the entirety of the loan defined as either APR. Variable-rate mortgage “ARM” may have a lower beginning rate and a monthly payment when compared to a fixed rate. These types of loans are given for individuals desiring to buy a home, property, refinance a home or refinance a commercial.
Home Equity Loan
- Used for liquidity or additions on top of a current mortgage.