When you borrow money, how much money you need to borrow is one of the first things to consider. Since you have come to this article, you have probably concluded that it is USD 200,000 that you are interested in borrowing. Therefore, we shall here a little quickly go through what applies to a loan of this size. You will also be able to find a comparison of interest rates between a number of lenders.
Different ways to borrow USD 200,000
There are a few different ways to borrow USD 200,000. The most common thing is to take a private loan, but it is also possible to borrow through various forms of loans with collateral. However, it is then required that certain conditions are met.
Loan with collateral
A secured loan is a loan where something that you own or buy can be used as a security for the lender. The most common examples of this are probably mortgage loans and car loans where the house and car will act as collateral for the loan. The big advantage of these loans is that there is less risk for a lender to lend money in this way and thus the interest rate is lower.
Mortgages tend to be clearly larger than this, but it can work to borrow USD 200,000 if you previously own a home that is not fully mortgaged. If you have this opportunity, this is probably the best option as interest rates are usually much lower.
Should you buy, for example, a car or similar, the tip is that you look up if you can not take a car loan instead as it usually also has a lower interest rate.
Private loans / loans
As you can see above, some special things are required for you to be able to borrow USD 200,000 in the form of a loan with collateral. This means that the most common option is to take a private loan or a bank loan as it is also called. Since this is not a loan with collateral, you can use the borrowed money for whatever you want yourself. The lenders will only care about your ability to pay when the application comes in.
Private loans normally range from about USD 20,000 up to USD 350,000 at the major banks. There are lenders who lend smaller sums, but they usually do not lend all the way to USD 200,000 that you are interested in. The term of a private loan can be controlled to a large extent and the alternative you have is usually in the interval 1 – 12 years. A longer maturity means a lower cost each month, but the total loan prices will be higher. Therefore, you have to make a balance between the price and the stress per month for your finances.
Requirements for borrowing money in the form of private loans tend to be fairly standard. This means that you who want to borrow USD 200,000 need to be of legal age and write in this country. There must be a fixed monthly income and this should generally be around USD 10,000 at the very least. If you are sure to get a loan, your income will probably be a little higher. Something that will most certainly be an obstacle to borrowing some money is if there are active payment notes.
Comparison of interest rates
If you look under this article you will find a quick list where we have compared the effective interest rate between a number of lenders and including the major banks. If you want to find a more comprehensive comparison, the tip is that you visit our department where we more thoroughly compare private loans of USD 30,000 – 350,000.
In our comparison you will also find some loan intermediaries where you can apply for a loan and get quotes from many different lenders. You can then see which offer is best and run on it. This is a smooth service that is free to use.