How to get an espresso machine at a discount with a $100 loan
- by admin
In a world where the average price of a new home starts at $1.2 million, a $50 loan is a steal.
But getting a machine for $100 or less could be a trickier task.
That’s because many home espresso machines require a $500 loan.
And with interest rates at historically low levels, some lenders might balk at offering such a low rate.
The average $50 credit line on an espresso-machine loan in the U.S. is less than 2% of the loan amount, according to data from CreditCards.com.
That means the interest rate on the loan could be anywhere from 0% to more than 20%.
A $500 interest rate is a lot less than what you would pay for an expensive espresso machine, says Dan Ziemba, an attorney and former general counsel at the Federal Deposit Insurance Corp.
In the case of an $800 loan, the interest rates on an $8,000 loan are more than double what you might pay for a $2,000 espresso machine.
And while the cost of the machine can vary widely depending on how much you can save and the state of your credit score, an $850 loan can be even more costly than the $100 you would be paying for an $880 machine, according the Federal Reserve Bank of Philadelphia.
That means you’d need to save up at least $50,000 before you could afford a $900 machine.
That extra $50 to get started is worth it if you’re a low-income person who has an existing loan or can qualify for a federal hardship.
But if you don’t qualify for federal assistance, the minimum loan amount is $250,000.
If you’re interested in refinancing your home loan, you can do so through the National Home Equity Refinance Program (NHREP).
You’ll need to pay $750 or more.
The program offers loans to low- and moderate-income borrowers.
You’ll also need to be able to show proof of income and have an income at least 50% below the federal poverty level, according NHREP.
If the interest on your loan is lower than the rate on a typical home loan or $750, you could be eligible for the NHREV.
If the interest is above the rate, you might need to qualify for the federal home equity loan program, according Topping.
The NHREVS is also available to low and moderate income borrowers with a qualifying income of up to $35,000 per year.
In a world where the average price of a new home starts at $1.2 million, a $50 loan is a…