When you are applying for a loan, you will see the rate first. It is because it will be the factor of how much you will repay the loan. The rates are part of the deal in the loan.
The rate of the long term loan
You cannot deny that when you choose a loan you see the rate of it. It has been known that Long-term loans have lower rates than the short-term loans. It is even better when you compare it to the credit accounts and credit cards rates. The standard of the credit card rate ranges from 10 to 25 percent interest. Even though every credit card will have a different policy about the rates, it means your credit card could be lower or higher than the rates of the long-term loan. If the long term loan is compared to the home loan, it can be said that the long term has lower rate too. The home loan is about 3.5 to 5 percent based on the survey in July 2012. When it compares to equity loans, it has similar rates. Then, the car loans are a little bit higher than usually but not so much.