WHEN IT COMES TO LOAN RATES, FIRST WE HAVE TO FIGURE OUT WHAT IT IS. IN SHORT, THE INTEREST RATE ON THE LOAN IS A PERCENTAGE OF THE INTEREST YOU NEED TO PAY TO THE BANK OR OTHER LENDING INSTITUTION WHEN YOU BORROW MONEY FROM IT. FOR EXAMPLE, 4.35% IS ACTUALLY YOUR LOAN RATE。

WHAT DO YOU MEAN, LOAN RATE 4, 351 TP3T

OF COURSE, THIS 4.35% LOAN RATE IS NOT A RANDOM SET OF FIGURES, AND ITS SIZE IS USUALLY BASED ON A NUMBER OF FACTORS, INCLUDING YOUR CREDIT RATING, THE DURATION OF THE LOAN, THE AMOUNT OF THE LOAN, AND KEY MARKET RATES。

We may wish to elaborate on these elements. Market interest rates, which reflect the cost of borrowing by banks or other lending institutions, usually follow when market rates rise。

Credit ratings, which are in fact a rating of your credit position by a bank or other lending institution. If you have a good credit rating, your interest rate on a loan may be lower, because the institution considers you to be better able to repay。

The duration of the loan, to some extent, also affects the size of interest rates. Because the longer the duration of the loan, the greater the cost to banks and other financial institutions of longer-term risk, the interest rate on the loan may be high。