If you are looking for a home loan, auto loan then you should have some idea regarding the basic home loan terms that may help you to take decision and manage your loan.
Principal:
Principal is the money that you require as loan from bank or the financial institute is the principal amount . If you need an amount of $40,000 as you home loan or auto loan then is amount is the principal amount.
Interest rate:
Interest rate is the second parameter that you need to pay the lender. As minimum id the rate of interest that s best for you. You should always search for the lender that offer loan with lowest interest rate. This interest rate may vary from lender to lender.
Their terms and fees:
You should also know about that if they have any hidden fee and is thr processing fee is reasonable or not. You should compare this with other lenders.
Duration of loan:
Duration of the loan should be as minimum as possible for you to become debt free. At first oi should think about of the monthly pay that you effort to pay. Duration may be 5 year or ten year depending on your ability to pay. But plan in such a way that you never be failure to pay the monthly installment. Because an failure in monthly payment lead to pay additional fee.