Do you need a loan of USD 120,000? as a subsidy for housing, car or boat, to buy new furniture, for remodeling, electronics or something completely different? Then you can take out an online consumer loan of 120,000.
But of course it is never free to borrow money, no matter which lender you choose. There are a number of costs associated with a loan, and here we look at what it really costs to borrow USD 120,000.
All about loans of 120,000
An online consumer loan can be used for exactly what you need or want, so you do not need to present the purpose of the loan to the lender. You decide how you want to spend your consumption, but keep in mind that the more you borrow, the more expensive and more difficult it becomes to repay the money.
Here on the site you can find lots of information about what to look for when borrowing to save money, how to find the best loan for you, etc. Here we look specifically at the price for borrowing USD 120,000. It cannot be avoided having to pay a number of costs.
This applies primarily to the interest rate, also called the nominal interest rate, which is stated as a percentage of the borrowed amount. It largely determines the price. In addition to this, there are several fees such as setup fees, termination fees, etc. These vary in type and size from company to company, and therefore you best compare the various offers by looking at the effective interest rate.
This includes both the nominal interest rate, all fees, fees, etc. – in short all the costs that exist for you as a consumer. With the effective interest rate you can directly compare the different offers and choose the cheapest.
Loan example of what it costs to borrow 120,000
Here is an example of what a loan of USD 120,000 can cost you. We start from a regular consumer loan and set the amount to USD 120,000 with a repayment period of 10 years. It is important to remember that you choose the down payment time to suit you and your financial situation. The faster the repayment, the less total costs.
We have chosen an interest rate of 9% and an establishment fee of USD 1000, which are relatively standard rates for a consumer loan of USD 120,000. The example is thus:
- Loan amount: USD 120,000
- Duration: 10 years
- Nominal interest rate: 9.0%
- Establishment fee: USD 1000
The above example will give you an effective interest rate of 9.52%. Your total costs are approx. USD 62,883 during the ten years. This means that in total you have to repay USD 18,888 to borrow USD 120,000.
Small differences in interest rates can make a big difference
It is important to spend some time researching the market to find the best and cheapest offer. Even small differences in interest rates can make a huge difference in price, and you can save a lot of money comparing your offers. For example, we can start from the above example but increase the interest rate to only 11.0%.
This would give you an effective interest rate of 11.68% and total costs of as much as USD 78,532 – ie more than USD 15,000 more than before. It is therefore expensive to choose a loan with a high interest rate, and you can easily compare the different options by using our listings here on the site.
We have listings of where you can apply for loans of USD 100,000. and loans of USD 150,000. . At these companies, you will typically be able to apply for USD 120,000.
Remember to submit a free and free application to receive your personal offer and see all the necessary information about the loan.