Loan Rates

Average interest rate on loans in the USA ranges from 3% to 5% per year. Very often this question is of interest to people who have moved to live in one of the American cities and need to quickly buy expensive things, furniture and equipment. The first thing is the low (by European standards) interest rate. Thus, the average rate does not exceed 3-5% per year. Americans distinguish several main types of lending:

The researchers note that the last 25 years have been a time of record low rates for the United States. However, recently this indicator has started to slowly go up. However, when signing an agreement, keep in mind that interest is both constant (even when taking money for a period of several decades, the client can be sure that the rate will not change) and floating. The latter means that some agreements may contain a clause on a possible increase in the size of the ready-made, which will be paid by the borrower.

Is it easy to get a loan in the USA?

The requirements of banks to potential borrowers are also different. In the United States, the emphasis is stressed not on documents confirming the client’s financial solvency or the presence of some material wealth, but on some other important papers. The first important metric is called the Social Security Number. Every citizen of the United States has such a number. It is able to contain the key information about a person. According to it, computer systems can easily find the entire available database of documents about a person and view almost any data about a specific person. In this regard, for Americans there is an elementary rule of personal safety – not to tell anyone the insurance number.

The number can also tell everything about a citizen’s credit history. This is the second most important indicator that will directly affect the positive or negative decision of the bank to issue a loan. The process of checking the credit history is carried out in the simplest way. The client indicates his number, which is subsequently sent to one of the bank’s friendly organizations involved in verifying the data of borrowers. The organization quickly checks all information related to previous loans and provides it to the bank. Credit history is measured in numbers (from 300 to 850). At the same time, the approval of a loan application is most likely with an indicator of 650 on this scale. Therefore, it is most important for the borrower to maintain the rating of their history. This is influenced by the following factors:

Mortgage loan in the USA

This type of lending is especially beneficial for both citizens of the country and for foreigners. There is an opinion that it will be much easier to get it in the USA (and pay off) than in any other country. There are several reasons for this: