Tagged Questions

This tag is a generic tag to be used when asking a question on Loans / lending. If there is a specific question the other related tags like home-loan, student-loans, etc should be used.

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1
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2answers
304 views

Is it a good idea for me to divert savings to pay off my debt?

I own a car which I had bought under desperation and stupidly agreed to pay a high interest rate (8%). Recently, I used money from my line of credit, which was at 6%, to pay off my car loan. Now I ...
2
votes
1answer
2k views

What are the tax regulations and ramifications of personal loans?

Are there any laws/taxes on a personal loan? I realize that you can't just give someone money unless it's under X amount (last I checked I thought it was 14k), but what are the rules around loaning ...
0
votes
2answers
165 views

Complete Opposite Calculations and Opinions - Using Loan to Invest - Paying Monthly Installments with Monthly Income

I managed to discuss Using Loan to Invest - Paying Monthly Installments with Monthly Income with a friend and his answer underneath is completely opposite from the current answers. Please understand ...
4
votes
3answers
226 views

Can future rental income be applied to present debt-to-income ratio when applying for second mortgage?

If someone wants to purchase a second home as a source of rental income (and potential investment), would (or could) a lender apply the estimated future income from rent on to the present ...
0
votes
4answers
460 views

Using Loan to Invest - Paying Monthly Installments with Monthly Income

I'd like to ask about a different payment method to this question. I use THEAO's first-rate answer there. How much profit or rate of return is required from a financial instrument, say stocks, to ...
4
votes
3answers
312 views

Using Loan to Invest - Paying Monthly Installments by Selling Originally Bought Shares

I'm trying to determine how much profit or rate of return is required from a financial instrument, say stocks, to break even with a loan taken out for this. I'll use specific numbers to simplify. ...
4
votes
2answers
229 views

Should I attempt to consolidate my own debt, or hire a professional? (Are there caveats to consolidating your own debt?)

I have some credit card debt across 3 accounts. Currently they're all at 0 APR, but the promotional rates are set to end soon, and I don't want to open any more accounts. In this situation, I'm aware ...
1
vote
1answer
178 views

Taking a car loan vs cash and effect on credit score

As a follow up for Should I finance a used car or pay cash? Will taking a loan improve a credit score? Does it matter how long it takes to pay off the loan? I wonder if taking a loan and paying it off ...
4
votes
2answers
194 views

If the creditor goes bankrupt, am I still required to pay back the principal I owe?

If I borrow money from a credit union (and make monthly payments) and the credit union goes bankrupt, am I still required to pay the money back? If the organization is bankrupt, to whom would I be ...
1
vote
2answers
253 views

I have a loan with a 6.5% interest rate. Should I divert money into my 401(k) instead of prepaying?

I have a loan with a fixed 6.5% interest rate, with an absurdly low minimum payment, so I have been paying extra each month (about enough so that the loan will have a 10-year repayment lifetime ...
3
votes
3answers
2k views

Questrade - What happens if I buy U.S. stock with Canadian money?

Recently, I heard that when you buy U.S. stocks with Canadian money in a Questrade account, they actually make a loan of the U.S. dollar amount you bought even if you have enough money to do the ...
2
votes
2answers
129 views

Who gets the periodic payments when an equity is sold on an repurchase agreement?

I am trying to understand how repos work. It is my understanding that selling equities with the promise of buying them back at later time is called repo (short for Repurchase agreement). If one ...
1
vote
1answer
170 views

Using a current house as collateral for a loan to buy another house

If my name is on the deed of one house (the deed only, not the current mortgage on the house), can I use the house as collateral to obtain another loan for another house?
1
vote
1answer
638 views

How to calculate the proportion interest/principal of this fortnightly (bi-weekly) loan payment?

You would need to borrow $660,000 and your fortnightly payments would be: Reducing loan $2,299.61 given 5.75 variable interest rate How much of the $2300 fortnightly paid is interest, and how ...
2
votes
2answers
152 views

Where to borrow money between college graduation and employment?

I finally finished my degree after the summer program and have my diploma and was wondering where I could borrow money while I look for a job? Job interviews are not cheap, especially if a flight is ...
1
vote
2answers
389 views

Can I use 0% Intro APR for getting a car loan?

When I'm applying for a chase credit card it has 0% Intro APR for 15 months. This is my first time for applying a credit card. And I just started a few months ago started working so I have a proof of ...
2
votes
1answer
315 views

How can I remove personal loans from my credit report?

I have two $16,000 personal loans. My husband and I recently reconciled after a 3 yr. separation and have found a home we want to buy. He doesn't know about the loans. I must get them off my credit ...
5
votes
1answer
130 views

Loan from Canada to UK

I live in Canada. My brother in the U.K. is thinking of purchasing a house with his wife. They are both teachers and careful with their money but don't yet have money for a down-payment. I am ...
5
votes
3answers
959 views

How to pay bills for one month while waiting for new job?

I recently, and unexpectedly, lost my job. Because I had summers off (no paychecks either), I've been using my credit cards for most purchases, saving what cash I had saved from the previous year to ...
6
votes
2answers
4k views

I plan on receiving a $200,000 personal loan via wire transfer. Do I have to report this to the IRS?

After researching online, I found many websites that said wire transfers are not reported to the IRS, but others said that they were reported. I just want to make sure that I do not have to pay taxes ...
6
votes
1answer
1k views

Is there a most efficient way to pay off multiple loans with the same interest rate?

My Situation: About $36k USD in graduate student loans. There are 4 different federal loans in play, each with a fixed rate of 6.8%. $12k w/ ~$1.2k in unpaid interest $10k w/ ~$1k in unpaid ...
2
votes
1answer
623 views

Getting a loan to buy a second house from family in India

I have one elder brother. My father has one house worth 30 Lacks. During property sharing, this house went to my brother. He is planning to sell that property, but I do not want to sell it to some ...
0
votes
3answers
154 views

For most loans, do you pay interest on the principal or amount remaining?

For example, if I take out a personal loan from the bank for 1k for 1 year with 10% interest, I would pay $100 in interest. What would happen if I paid back $900 on the first day of the loan, and then ...
7
votes
5answers
909 views

Why would a car company lend me money at a very low interest rate?

Why would a car company lend me money at 1-2% when they could lend it to the federal government at ~2.9% with zero risk?
6
votes
2answers
7k views

What is the difference between a Loan, a Lien, and a Mortgage?

So, I recently heard someone talk about a Lien as thought it was similar to a Loan. So, I googled various things for a while and came to no concrete, concise answer. If a Lien or a Mortgage is a ...
5
votes
2answers
131 views

Does there exist a kind of loan where no part of principal is paid, while interest is still paid?

I know that when debt is being re-paid, one pays interests along with repayment of some parts of debt principal. However, I am wondering a case where no part of debt principal is re-paid while ...
6
votes
1answer
86 views

Verification of student loan amounts

I consolidated my student loan debt with FedLoan a year or two after graduation. Is there an easy way to verify that my current balances are accurate? Is this something an accountant would handle, or ...
6
votes
3answers
152 views

Loan-with-PMI vs other loan: which is best to pay down

I would like to understand whether it is better to make extra payments on a home loan that includes PMI (Private Mortgage Insurance) or a different (high interest) loan. Typically, when deciding ...
4
votes
3answers
206 views

What costs should I consider when planning to maintain a vacant condo for a few years?

I have a job offer in a different city. I currently own a condo that I may return to but that would be really nice to have as a hub for returning to visit family as well as I have a family member who ...
2
votes
1answer
215 views

How do credit union loans and dividends vs interest work?

Since a credit union's customer own shares/stocks, then what is really happening when a credit union makes a car or home loan to a new customer? Is it shorting selling stocks at an interest rate? ...
7
votes
1answer
349 views

Any Canadian tax shelter for lending to friends or family?

I am considering helping friends or family out of credit card debt, which is costing them ~18% per year by giving them a loan at more like ~3% (kind of like consolidated credit/debt). Is there ...
12
votes
4answers
15k views

When can you use existing real estate as collateral to buy more?

My grandfather owned a dozen apartment buildings, and when I asked him when I was little how he got so many, he said he just bought one, and then used it for collateral to get the second, and so on. ...
9
votes
5answers
437 views

Paying Off Debt: When CC Companies Won't Reduce APR

For the past two years I've been living, for the first time, under the weighty, grey cloud of credit card debt. Foolish use of personal credit cards to fund asset purchases for an LLC have resulted in ...
3
votes
2answers
212 views

How to get the lowest mortgage rate on a new purchase?

Looking for a home loan in the mid $400,000, with 20% down on the value price, a first home purchase and in the U.S. What strategies can be applied to ensure the best interest rate possible? What ...
2
votes
2answers
89 views

Basic Info On Construction Loans

My wife and I are looking into possibly buying a lot in Chicago and having a custom home built on it. My most basic question: is it possible to get a loan that covers buying the lot AND the cost of ...
2
votes
3answers
212 views

Interest rate question

I'm having a little trouble figuring this out. Suppose I took out a loan with the following terms: Loan Amount: 1,000 Interest Rate (APR): 10% Compound Frequency: Monthly (12 compounding periods) ...
0
votes
1answer
1k views

How to Split a loan, and how much should be my investment

I am from india, my idea of the question is to understand what is the loan amount i am entitled to, what should be my plan for applying a loan, and is there any ways to reduce interest rate after a ...
0
votes
1answer
71 views

Mortgage-based budget spreadsheets?

Got my first pre-approval on a mortgage loan, for an amount much larger than I thought I would. At first glance, it looks like more than my conservative mind would think is reasonable to spend on a ...
0
votes
1answer
99 views

How to find if a public company has taken out a loan?

From a company's Income Statement, Balance Sheet, and Cash Flow data, is it possible to figure out if the company has taken out a loan and how much it has taken out?
4
votes
3answers
412 views

How should I calculate the opportunity cost of using a 401(k) loan?

I've seen a number of financial articles that discuss the "opportunity cost" of using a 401(k) loan; however, I don't seem to recall ever seeing a good formula or calculation that can be done to ...
5
votes
3answers
8k views

How to deal with my job change & 401k loan that I can't fully pay back?

It's been 60 days since I changed my job and I have an outstanding 401(k) loan of $30K(+30k non loan amount). I have only $20K to pay and my 401k plan won't accept the partial amount. I still didn't ...
2
votes
3answers
493 views

Quick formula for calculating total interest in my head

Is there a rough, quick and dirty, formula that I can do in my head for calculating the total interest on a loan? Something like: TotalInterest = Principal * (Yearly Interest% * Term In Years / 2); ...
1
vote
0answers
43 views

Best software to import finances [duplicate]

Possible Duplicate: What are the best software tools for personal finance? I'm looking for a tool to manage my personal finances with. I've got various loans, credit cards, a few ...
3
votes
1answer
128 views

In what state do usury laws apply?

Let's say that I live in Connecticut and take out a loan with a bank in another state (for this example, let's say New York). Is there a general principle on which state's usury laws would apply, or ...
5
votes
2answers
321 views

Do I have an option to transfer parent plus loans to myself?

My wife and I are currently about to start our payments for student loans. All of our loans are federal student loans through Direct Loans. We also have a parent plus loan, which is technically under ...
0
votes
2answers
69 views

Are there loans for buying businesses?

You want a house or something, you get a mortgage. But what if you're buying up a hotel, or a restaurant? I see these things for sale online at reasonable prices but not so reasonable that I could ...
4
votes
1answer
380 views

Why am I getting “Pre-approved” loans from random financial institutions in the mail?

Lately I've been getting letters in the mail saying that I've been pre-approved for a $2000 dollar loan by some random bank or financial institutions. I've never given out my address to anyone. I ...
3
votes
1answer
414 views

Does it make sense to get a 401k loan for land purchase?

Does it make sense to use a 401k loan as a downpayment on land that you intend to build a house on? I am currently in one house, however, I do not have much cash to make a downpayment on land that ...
3
votes
4answers
130 views

What is a 401(k) Loan Provision?

I'm considering a few job offers for post-college, and I'm wondering how this (Roth) 401(k) plan stacks up against the average offering: After one year of service, [Company] will: ...
3
votes
1answer
13k views

My Co-Signer is the Primary Account Holder for my Car Loan - Does this affect my credit?

I recently financed a car purchase, and my father co-signed for me. I received the first bill, to find out that he is listed as the primary account holder with the finance company, although I am the ...