However, because the need for short term borrowing was still in demand, lenders have found a way to make it happen, even in states like Arizona. The only catch is that you need to have a car.  Auto title loans are on the rise in Arizona. While the APR is less than that of a payday loans, it is still over 100%. That means that if you take a year to pay the loan off, you will be paying double the amount for the loan.  If you borrowed $1000, you would not only have to pay the $1000 back, but pay another $1000 in interest for a total of $2000!

Because auto title loans only use your car as collateral, the burden of paying the loan is up to the borrower. It is often not automatically taken out of your account at your next payday like an online payday loan. Instead, the borrower has to remember to make the payments each month. Like a payday loan, make sure that you can quickly pay back the loan and still have enough for your other bills and living before you go into debt. Even people who make a plan to quickly pay back the loan find that they are paying a lot of interest, so if you have another option, like a credit card, consider using it first.

While getting into debt using a credit card can be just as difficult on your finances, it at least usually has a much lower interest rate. The temptation with credit cards is to pay the minimum balance, which is often a very small sum each month, but doesn’t pay of the balance very quickly. If you need some quick cash and are considering using a credit card, make a plan to pay it back quickly and stick to it. Sometimes unforeseen events happen and you need money up front, but if it is becoming a habit, get some free credit counseling and figure out how you can stop owing people money.

The 10/1 Year ARM

Yes, another Adjustable Rate Mortgage. But this time, the terms are different. For the first 10 years, the interest rate stays the same. After that, the interest rate changes yearly. Why would you want something that changes on the back end of the loan when you don’t know what the market will be like? Well, that’s because the mortgage company doesn’t know what the market will be like either, and they are banking on interest rates getting higher. Because of that, they are often willing to cut you a break in the interest rate for the first 10 years, which means a lower payment.

If you are going to be in a house for less than 10 years, this loan could be a good option. It provides the stability of a fixed rate mortgage with often the benefit of a lower interest rate. And like a typical one year ARM, you can always choose to refinance. This mortgage could be a bad idea for people who are going to be in their home for longer than 10 years because of the shock of going from a stable monthly payment to a variable rate, which could very well make your mortgage payment a lot larger.

As with all adjustable rate mortgages, make sure that you have a certified loan officer explain all of the details of the loan to you so that you understand what your responsibility will be in the future and when your mortgage payment amount could change.

One Year Adjustable Rate Mortgage

Known as an ARM loan, these mortgages change their interest rate every year, much like flapping your arms up and down. The rate is usually tied to a market index that fluctuates. The good thing is that the interest rates are usually lower than a new fixed rate loan, and can save you a substantial amount of money in interest. The bad thing is that if interest rates sky rocket, so does your mortgage.

Loan officers will often tell you that you can always refinance later and switch to a fixed rate mortgage. That’s true. But remember that adjustable rate mortgages usually have a lower interest rate than fixed rate mortgages, so unless you get a nice downturn in interest rates in the middle of the year, it will always be tempting to keep the loan you have. If interest rates rise drastically, then you may find yourself unable to make your payments (and kicking yourself).

However, if you are looking for the best deals in interest rates, you can often find them with this type of loan. Just be prepared for the ups and downs of the market. If you are living in a house short term, this may be the loan for you. It’s less scary than a balloon loan if the house takes a while to sell, but you can often get the best interest rate and save yourself a substantial amount of money. Always remember to make a plan and account for the what ifs that could ruin it.

Balloon Mortgages

No, these loans don’t come with a dozen multi-colored balloons attached, but they do come with a very large sum of money attached at the end. Owed by you.

Balloon mortgages are like fixed rate mortgages where you pay a certain amount every month, but the terms are shorter, usually just 3 to 7 years. They don’t make you pay huge sums of money every month to pay off the entire loan in that short of a time. Instead, they lower the monthly payment for the time that you are making payments, and then have you owe a large amount of money at the end of the loan terms.

When would you want a balloon mortgage? When you have an inheritance coming to you in 3 to 5 years. It can also be a good arrangement for people who do not plan to live in a house for long. Often, these mortgages are assumable– meaning that the person who buys the house can take over the mortgage.

Also, if you plan to pay off your mortgage quickly, a balloon mortgage could be  good option. But be sure that you can afford to pay off the house completely before the end of the terms, otherwise you could lose your house and your credit if you can’t come up with the sum of cash at the end of the loan.

Because of the large end payment, balloon mortgages are considered higher risk. You never know what’s going to happen in the next few years, or if you’ll be able to sell the house before the end of the terms. Play it safe. Make sure that you can meet the loan terms before you float off into bliss with your new house.

Fixed Rate Mortgages

There are so many mortgage options, it’s overwhelming, so we will highlight 9 of the most common types of mortgages in this series. The first is the most straight forward, and is probably the type of loan your parents had on their house: the fixed rate mortgage.

Fixed Rate means that you sign a contract for a certain annual percentage rate (APR), and you pay that for the life of the loan (until the mortgage is completely paid off). It also means that they figure the total cost of both the house and interest and divide the amount up into equal portions that you pay every month.

Typical lengths of mortgages you will see with a fixed rate are 10, 15, and 30 years. A lot of people like this option because they know that their mortgage will be X amount of dollars every month, and it’s easy to budget.

A fixed rate mortgage is good for home buyers who plan to settle down and live there for a while, usually 10 years or more. Other loans don’t have you pay as much the first few years, so if you will only be living in a house for a couple of years, another type of mortgage might be for you.

However, circumstances often change, and with fluctuations in the housing market, be careful not to get stuck with a mortgage that you can afford now, but you can’t afford in the future if you are not able to sell the house right away. Always make sure to have a certified loan officer clearly explain the terms of every loan for you so you know what your responsibility is.

She said yes! You are on top of the world. You never thought the day would come that you were so whooped over a girl you couldn’t imagine your world without her. She is giddy with excitement, and so fun to be around. She is planning the wedding she dreamed of as a child. You just enjoy all of the food and cake tastings.

You dutifully get the list of invitees from your mom, and realize she has invited every one of her friends and all family members, including a couple of great aunts you didn’t know you had. Meanwhile, your fiancee has added foie gras to the menu– did you even taste that?– and has decided that renting tuxedos is outdated, so she wants you to buy your own. An Armani. You paid cash for the ring, but your savings is going towards the down payment of the house the two of you are planning to buy. You love her and don’t want to crush her dreams. You are both working and making decent money, but the cost of the wedding keeps getting higher and higher.

You love her. You sit down and have a good long talk about reality. She usually lives there. But this wedding is her fantasy. You decide you can fulfill her fantasy this time. She has fulfilled a couple of yours. But you still need the money.

You don’t have much of value for collateral. Her ring is really all, but there is no way she would think of even having the chance of parting with it. Here is where a personal loan comes in. It’s for those circumstances where you need a loan for things that have great meaning to you, but not a lot of resale value.

You have a good relationship with your local bank, and their loan officer seems nice and acts excited for your marriage, but is she really giving you the best rate? Click and compare! Get the best rate for you and your individual circumstances by comparing online personal loan quotes.

It happens. The gas company double charges you for a bill, and instead of refunding the money, they give you a credit. Never mind that you are suddenly out over a hundred dollars for that month! If it wasn’t the gas company, then the cell phone company got you when your kid decided to go on a texting splurge, and you didn’t sign up for unlimited texting. Whatever the reason, the results are the same: suddenly you don’t have enough money in the bank to make all of your bills that are falling due. It’s temporary because you will have them money in a couple of weeks with your next paycheck, but if you don’t pay that bill soon, your credit will be ruined.

For times like these, payday loans are an option. They can forward you a couple of hundred dollars, and you can stay afloat. However, emergency measures call for emergency pricing, and it aint cheap. A $30 fee seems reasonable for a $200 advance. You’ll have that $30 soon, but you don’t have the $200 now, which is what you need. But that $30 is for a two week loan. That means the APR is 360%! You would never purchase a car or house with that kind of interest. But not getting the loan means that your credit will be ruined, and you’ll be paying higher interest on your credit cards and other loans, so the fee is worth it.

HOWEVER, if emergencies are cropping up regularly, and you are using the service often, then it’s a very bad idea. Even credit cards have lower interest. This would be the time to start budgeting. It may mean living a little lean and getting rid of the premium package on your cable, but creating a savings to fund these emergencies is always better than paying hundreds, sometimes thousands of dollars every year. You could buy a new flat screen with the money saved in interest charges.

Be smart. If you are in a temporary bind, find a payday loan service. If you are always in a bind, cut back on spending. Don’t get quilled.

You walk into a dealership with shiny new cars in the showroom. They show you the full featured models with sunroofs and leather heated seats. You test drive a  convertible just to feel the wind in your hair, even though you know you might be walking away with the minivan your wife wants for the kids. Then you get down to the all important business of “your” car. They show you colors and go on and on about the superb sound of the Bose sound system and the convenience of a DVD player with wireless headphones.

Then you talk numbers. You know you’re getting a sedan, but should you play it up with a spoiler just to make it a little more of the sports car you want? It’s an extra $500. But the saleman tries to convince you that the spoiler defines who you are. You decide to fork out the extra cash, but forgo the Bose sound system (you and your buddies can install a custom one later).

The car is decided. They have it on the lot, and you can drive away that evening. Before you even start haggling the price of the car, the salesman takes an initial strike and asks you what you want you monthly payment to be. Of course, you know what you can afford for a monthly payment but here is the first big pitfall.

They want to sell you a loan just as much as they want to sell you that shiny new car. Now that you have found your vehicle on their lot, they feel that they have the upper hand in the price negotiation, and they are going to try to blindside you by talking about a monthly payment amount instead of pricing the car and giving you a deal on the interest rate. If you give in and say $300 a month max, then their little accountants will do some “magic” to show how you can have the car for $289 a month with almost no interest. What they don’t tell you is that you are paying full MSRP for the vehicle and have a sizable down payment. The tricks vary depending on the parameters: down payment, advertised qualifying interest rates, car price, how long that particular vehicle has been on the lot, etc. But they are going try to get you to agree to a loan that is in their best interests, not yours.

But you are at LQuillin.com! Get auto loan quotes from various sources and come armed with the best loan terms already in your pocket! With your own financing figured out, they know that you are a savvy shopper and that in order to get you to buy the vehicle, they are going to need to make the price appealing for you.

Don’t get quilled by an auto loan. Find the best loan for you now!