The Best Low Rate Loans For 2011

The Internet is undoubtedly your best bet when it comes to objectively finding the best low rate loans for personal or small business use (including mortgages and education). Just like any other product, the lending world is highly competitive and finding the right deal could save you a lot of money.

In this article I will attempt to find the best low rate interest loans I can (student loans, small business loans and mortgages), and will also do my best to highlight common pitfalls, shifty advertising and hidden costs that are often ignored by borrowers, but end up being a burden in the long run.

The first thing you need to consider when applying for a student loan is your level of financial need, and where you intend to apply. In my article, fixed rate student loans, I go over some of the most popular choices as well as various programs for both parents and students.

The second consideration borrowers will need to ask themselves is whether they want to get a private loan or a federal loan. I have compiled a table below that should help prospective borrowers understand what may be more suitable for their needs.

For smaller loans by people with financial need I suggest looking at a subsidized Stafford loan which offers great benefits and is federally guaranteed. Unsubsidized loans are also available and offer great low fixed interest loans, although the size of the loan itself may not be enough for some families (congress capped the loan amount to less than $10,000).

Private student loans come in many different shapes and sizes and may be more suited to people with a good credit history (for low rates). Your first step should be comparing offers. Using this loan discount calculator is a solid way to compare interest and options quickly.

The best low interest rate loans will have a LIBOR of over 2.0%, or alternatively a PRIME of 0.50% with no additional fees. Pay special attention in avoiding closing cost minefields!

The U.S Small Business Administration offers various attractive packages for small businesses. To determine which program is best for you, you will need to know where and how you intend to use the funds.

• The SBA 504k - An option available for funding fixed assets, such as construction or machinery investment.
• The SBA 7b - Funds for new or established business to kick start their enterprise, this is a flexible loan.

Despite the fact that these loans are either fully or partially insured by the SBA, they are not issued by them. You will still need to find a private lender to receive your financing. You will need to make sure that you meet the rather extensive eligibility protocols as well.

If you opt for a private lender program you will need to have the following information ready (as well as any other information the commercial lender necessitates, but these are a sure bet).

• Your Business Plan
• Cash Flow Projection
• Financial History and status
• Credit Report

I suggest using the loan comparison link on the capsule to the right to review and compare private offers and find the best low rate loan available. 

I my article "the best fixed rate mortgages" I go into a great deal of detail on finding a good mortgage solution, an example is the The FHA 203(b). I suggest reading more on low interest mortgage from there, it also covers eligibility and federally secured solutions.

Thank you for taking the time to read my article, I hope you found it informative (or at the very least set you on the right path!). Feel free to use the comments module below  to post suggestions, praise or criticism and I'll do my best to reply promptly!