According to FICO, historical data indicates that borrowers with a good mix of revolving credit and installment loans generally
represent less risk for lenders.
If you default on your loan, the FHA's insurance covers up to 90 percent of the loan, so there's
less risk for lenders.
It's a trade - off: more risk for you,
less risk for the lender, which means a better interest rate.
A guaranteed loan is a win - win situation for both parties, and it can lead to a lower interest rate for the borrow and
less risk for the lender.
That's because there is
less risk for the lender, which means you can get a lower interest rate.
The reason for this is that you are able to borrow a larger sum of money than most other loans offer and you will usually pay a lower interest rate than with other lines of credit or other loans because there is
less risk for your lender.
These cards usually have lower APRs than traditional cards due to their being
less risk for lenders.
Less risk for the lender.
(And in case you're wondering why, it's because there's
less risk for the lender.
However, because your home serves as collateral, EEMs have
less risk for lenders than other energy efficiency financing options.