Alternative Loans

Rates And Interest

Interest Rate - Most private loan programs are tied to one or more financial indexes, such as the Wall Street Journal Prime rate or the BBA LIBOR rate. Beginning a few years ago, money paid toward interest is now tax deductible.

Fees - Private loans often carry an origination fee. Origination fees are a one-time charge based on the amount of the loan; they can be taken out of the total loan amount, or added on top of the total loan amount, often at the borrower's preference. Some lenders offer low-interest, 0-fee loans; but these are usually available only to those with high credit scores of 800 or more. More commonly, loan origination fees are from 3-9%.