Greater Central Texas Federal Credit Union,
3305 E Elms Road
Killeen, TX 76542
Telephone: 254-690-2274
www.gctfcu.net

Things To Consider When Deciding On A Loan Term

Getting a loan has always been a daunting procedure. No matter you are a first timer or have prior experience in going through all the mortgage paperwork, there are a lot of things that need to be considered. You should perform a thorough research and evaluate all your options to ensure that you are making the right decision.

If you are planning to finance your home or vehicle purchase, one of the most important factors to keep in mind is the duration of the loan. There are both short and long term loans available. Here are some details on both types of loan plans:

  • Short term loan: A short term loan is usually for less than 3 years and is a good option if you want to save money in the long run. A smaller duration implies low interest rate and less amount repaid at the end of the loan tenure. However, you may need to pay more in terms of monthly repayments.
  • Long term loan: These can be defined as the loans that last for more than 3 years. These are generally preferred by borrowers who want to pay low monthly payments, despite of the fact that they end up paying more as the interest. Long term loans can either be secured or unsecured.
Things to consider when deciding the home or auto loan term:

  • Age: The age of the borrower has a major influence on loan term that he may be eligible for. Whether you are getting a loan from a bank or credit union in Killeen, make sure you inquire about any specific age criterion that they may have. Most lenders do not provide loan term loan to individuals who are nearing their retirement or have already exceeded that age. In such cases, you can either opt for a short term loan or inquire if you can allot a younger applicant to make the remaining payments post your retirement.
  • Your income: Your income is also an important factor in determining the amount of loan repayments you can conveniently afford every month. To select the most suitable loan tenure, keep in mind your total income from all sources and the financial liabilities you have to bear, i.e., insurance payments, kids’ education, home rent etc. Therefore, you should choose a plan that allows you to easily pay off the loan in the minimum time period while retaining sufficient savings for unexpected circumstances, such as a medical emergency.
  • Amount of loan required: The higher amount of money you borrow, more will be your monthly installments and interest payments. Hence, you should try to apply for a smaller loan so that you can pay the least amount of money at the end of the loan tenure. This way, you will not only be able to pay off the loan early, but also make considerable savings on interest payments.
  • Rate of interest: Comparing the interest rate quoted by the credit union is also important while deciding on the loan term. Depending upon whether you are opting for a variable or fixed interest rate, your overall loan payments may vary. For variable interest loans, you may have to pay higher monthly installments in case of a long term loan. This may be due to the fluctuations in the market rate over the span of years. Short term loans, however, may not be affected much in this case.
After evaluating all the factors, the general consensus is that you should opt for a home or auto loan that offers the lowest interest rate and for a shorter duration. However, make sure that you are able to pay the monthly installments without any sort of financial burden.

Greater Central Texas Federal Credit Union is a leading credit union in Killeen. We offer a wide range of home and auto loan plans at low interest rates. You can also avail many other financial services by being a member of the credit union. For more details about our services, you can call us at (254) 690 – 2274 or visit our office at 3305 E. Elms Rd., Killeen, TX  76542.

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GCTFCU Blog | Looking For Cheap Auto Loans In Killeen?
Greater Central Texas Federal Credit Union,
3305 E Elms Road
Killeen, TX 76542
Telephone: 254-690-2274
www.gctfcu.net

Looking For Cheap Auto Loans In Killeen?

A majority of people postpone buying cars just because they do not have enough money for the same. If you are amongst the ones who have postponed buying their dream car due to financial constraints, you will be glad to know that various secured and unsecured auto loan plans can help you. You can choose from various auto loan plans, loan tenures etc that will suit your financial budgets.

What are secured and unsecured loans? A secured loan is backed by some collateral having value equal to or greater than the loan amount. It offers you flexibility to repay the amount at a reduced rate of interest. Whereas an unsecured auto loan on other hand does not make you pledge any collateral to the loan provider. It is simply granted on the basis of your monthly income as well as expenses. Though one can find a number of banks and auto loans providers in Killeen, but choosing the right one is extremely important. While selecting an auto loan, you should look into any hidden charges, interest rates, loan tenure etc being offered by financial service provider and should compare it with others.

We at Greater Central Texas Federal Credit Union provide you quick and cheapest car loans in Texas. We neither harass you ask you by asking unnecessary questions nor make you wait for days to sanction your auto loan. We are renowned to approve your loan within 24 - 48 hours from the time we receive your completed application and verification of income.

If you are planning to buy a car, truck, van or any other vehicle, visit us today and avail the cheapest auto loans in Killeen. We also provide quick used car loans. All you need to do is fill in your details in the used auto loans application form. We will get back to you in 24 hours and provide you cheap auto loans.

For Cheap Auto loans in Central Texas visit us at Greater Central Texas Federal Credit Union 3305 E Elms Road, Killeen, TX 76542. You can also call us at 254-690-2274.

Cheap Auto Loan - Secured Auto Loan

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GCTFCU Blog | Reasons To Opt For Credit Union Auto Loans
Greater Central Texas Federal Credit Union,
3305 E Elms Road
Killeen, TX 76542
Telephone: 254-690-2274
www.gctfcu.net

Reasons To Opt For Credit Union Auto Loans



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