How to Get Your Consolidation Loan Interest Rate

 


Visitors: 165

The advantage to trying to consolidate your student loans is that it is likely to be a less expensive way to pay out your loan with a better than expected interest rate. If you need to pay your loans out over a longer period of time, say twenty years, then, although you will have a lower monthly payment, you should know that you will wind up paying more interest over the longer period of time. That means it will cost you more in the overall picture. If you are trying to figure out what the consolidation loan interest rate would be if you were you to try this method of loan repayment there is a formula that can be followed to tell you if it going to work for you.

Determining the consolidation loan interest rate is done by taking the loans you already have, calculating the weighted average of the interest on those loans and then rounding that rate up by one eighth of a percent. That will give you the interest rate that you can expect to pay. This rate will then by locked in until for the full life of the loan no matter how long it will be.

The weighted average is determined by multiply the interest rates by the amount of the loan. This is called the per loan weight factor. Once you have these numbers add the loan weight factors up. Then add together the total of your outstanding loans. Once you have this number take the total per loan weight factor and divide it by the total loan amount. Take the number you get and multiply it by one hundred. You then take this answer and round it up to the next one eighth percent. With this resulting number you compare it to eight point twenty five percent. Whichever number is the lower one will be the consolidation loan interest rate that you will have for the lifetime of your loan. It may seem like a lot to figure out. It may seem like a long commitment to paying off the one loan when you feel you could just as easily pay your student loans a little bit against each one each month. But the truth is this really is the best way for a student to get out of debt.

Mayoor Patel is the writer for the website http://www.interest-rates.wares-are.us/ . Please visit for information on all things concerned with Consolidation Loan Interest Rate

(421)
Tags:
consolidation loan interest rate

Article Source:


 
Rate this Article: 
 
Low Interest Debt Consolidation Loan - Easy Debt Consolidation Loan Scheme
Rated 4 / 5
based on 5 votes
ArticleSlash

Related Articles:

Get The Best Interest Rate on a Debt Consolidation Loan

by: Tim Grimsley (October 30, 2006) 
(Finance)

Consolidating Debt - How to Get The Lowest Interest Rate on a Debt Reduction or .

by: Carrie Reeder (September 20, 2005) 
(Finance/Debt Consolidation)

Have a Loan With an Adjustable Mortgage Rate - Three Factors That Will Affect ..

by: Darin Sewell (July 16, 2008) 
(Finance/Mortgage Refinance)

Low Rate Mortgage Refinance Loan - How To Get A Better Interest Rate

by: Carrie Reeder (December 21, 2005) 
(Finance/Mortgage Refinance)

Low Rate Debt Consolidation Loan - Using Low Interest Loans to Consolidate Debt

by: Paul Sarwana (June 13, 2008) 
(Finance/Debt Consolidation)

A Low Interest Debt Consolidation Loan When Your Credit Card Interest is Too ..

by: Thomas Erikson (April 06, 2007) 
(Finance)

Debt Consolidation At Low Interest Rate!!!

by: Alex Jonnes (July 10, 2006) 
(Finance/Debt Consolidation)

Secured Personal Loan: Your Very Own Multipurpose Loan With A Low Interest Rate

by: John Carry (September 29, 2006) 
(Finance)

Cheap Loan - Find A Loan With Low Interest Rate

by: George Kane (February 29, 2008) 
(Finance/Loans)

Low Interest Debt Consolidation Loan - Easy Debt Consolidation Loan Scheme

by: Arvind Singh (September 16, 2008) 
(Finance/Debt Consolidation)