I don’t know about you but buying a car or a home would be very difficult for most of us to afford a car or a home. It would be the bus or renting for the rest of our lives. These loans can be very expensive if you get the wrong loan or the wrong person to help you with the loan. Make sure you go to a good institution in order to get exactly what you need; mind you need not want. A car that won’t break down on you and can take you to and from work should be your main priority. Later in life when we can all afford it we can get what we want. Car loans can be very expensive as most car dealers are in it to make money, new flash, not to help you get what you need. Determining what you can afford ahead of time would greatly increase your chances of getting just that. Shop around at different institutions large or small and see what they have to offer in terms of loans. Credit Unions sometimes have the lowest fees and interest rates. If you have Gold credit than a dealer might give you a better deal as you are a lower risk individual, when we got our civic, my wife had hold credit and we put a hefty down payment, her interest was 0.9%, in this scenario the dealer is paying her to own the car if you take inflation into consideration.
Same applies for home loans, shop around a bit and maybe get a broker involved as they can shop you around and get you a better deal. And while they would cost you a bit of money up front they can save you thousands in the long terms with even a 0.5% lower rate over the span of 15/30 years’ term loan. Stay away for ARM loans, I could say unless you know what you’re but a better plan is to stay away from these loans. Currently even with the recently hiked rates, you can still get a home loan for sub 5% which historically is low. If you don’t already own take a look to see if you can afford it. Our current mortgage is at $1100/mo that would cost us $1300+ in renting something similar.