Personal Finance presentation, loan types and institutions Federal Savings Bank, prepare to get financially fit by practicing personal finance. First, we’ll take a step back and think about the places we might go when thinking about personal financing or alone, then we’ll zoom in to the federal saving banks or saving and loan associations.
00:21
So when thinking about a loan, the first thing that would come to mind most likely would be the commercial banks to go to we talked about them in a prior presentation, as we have with the consumer finance companies, the credit unions, life insurance companies, and the Federal Savings banks, the savings and loan associations those been where our focus will be at at this time.
00:43
So the Federal Savings Bank lending policies in general would be, they’re going to lend to all credit worthy individuals often require collateral, that being then something supporting the loan, especially if you have the larger types of loans. So if you have a loan on a car, or if you have a loan on a home, for example, the collateral often being the car or the home. loan rates vary depending on size of the loan, length of payment and security involved, which would be the typical kind of situation, of course,
01:15
as they be modic, moderating between the risk and the rates of returns that they will be charging for the loans, the Federal Savings Bank loan types, so it’s somewhat similar to what we would see in other financial types of institutions, such as a bank, what types of loans might be available, we have the personal installment loans. So we’ve talked about the installment loans in prior presentations, so I won’t go into them in a lot of detail here, the education loans, we have the primary mortgages and secondary mortgages, possible loan types that you might find at the Federal Savings Bank.
01:51
And then we’ll go into some of these not into as much detail but remember, the personal installment loans, those are the loan that is repaid in regular installments, as are most mortgages and car loans. They are good for borrowers as a way to finance more expensive items while they provide lenders with regular payments. So whenever you’re looking for something, a larger type of purchase, the standard format that being generally the installment loans often paid back in fixed installments that are equal usually monthly, they are usually less risky than other alternative loans that do not have installment payments, like balloon payment loans or interest only loans.
02:29
Your amortization schedule determines how much you pay in monthly installment debt payments. Then we have the education loans, education loans, money borrowed to finance post secondary education or higher education related expenses. They are intended to cover the cost of tuition, books and supplies and living expenses. While the borrower is in the process of pursuing a degree. Payments are often deferred while students are in college. And depending on the lender, sometimes they are deferred for an additional six month period after the degree is earned.
03:03
So although there, there are a variety of education loans, they can be broken down generally into two basic types. You have the federal loans sponsored by the federal government and then the private loans. When you’re thinking about basically education type loans. We have the primary mortgages. We’ve talked about the primary mortgages in prior presentations when we thought about other institutions and loans they possibly could offers as we have as well to the secondary mortgages, so for more detail about them, you can take a look at the prior presentations.