“I’m a little confused about the difference between loans that are paid back on the reducing balance and loans that say add-on. I’m comparing mortgages from different companies in order to buy a house, and I want to ensure that I get the best deal. Please advise me.”

It’s not an easy task for the average consumer to comprehend how loans are calculated. You could probably call four institutions and ask for the same quote and receive four different repayment amounts, depending on how they compute their loans.

When you are looking at loan options, it’s important to ensure you are comparing apples with apples. The true cost of a loan can include commitment fee charges and insurance costs, which would vary across the companies. Continue reading What a Difference a Loan Makes →