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An installment loan is a lump sum of money that you borrow and then pay back in fixed intervals. Installment loans are often used to finance a major purchase, like a house, car or boat, or to ...
The monthly payment amount is determined by the amount of the initial payment (the ‘deposit’), which can be negotiated with the financing company, and the final balloon payment, which is set by the financing company. The financing company is likely to be represented in this discussion by either a car dealer or automotive finance broker. [6]
Installment loan payments usually include interest charges that are charged over the life of the loan and may be higher for borrowers with less-than-ideal credit.
This makes installment loans a good option for large expenses like paying for school, buying a car or even purchasing a house. 5 most common types of installment loans
Usually, car leases allow the lessee to drive the car for a certain number of miles for a certain number of years. The lessee pays a fixed monthly payment for the privilege of driving the vehicle, and when the lease ends, the lessee returns the vehicle to the lessor. The lessee pays only for the value of the vehicle for the term of the lease.
An installment loan is a type of agreement or contract involving a loan that is repaid over time with a set number of scheduled payments; [1] normally at least two payments are made towards the loan. The term of loan may be as little as a few months and as long as 30 years. A mortgage loan, for example, is a type of installment loan.
Equated monthly installment, a fixed payment amount made by a borrower to a lender at a specified date each calendar month; Installment Agreement, an Internal Revenue Service (IRS) program, which allows individuals to pay tax debt in monthly payments; Installment loan, a loan that is repaid over time with a set number of scheduled payments
Installment fees or service charges are another consideration when choosing a car insurance payment plan. Credit card companies and financial institutions usually charge a fee to process payments ...
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