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5
votes
3answers
98 views

Deciding on whether to redraw from mortgage

I'm trying to work out whether or not there will be any benefit in redrawing from my mortgage to pay off my car loan. The idea is that if I pay off the loan, I can use the monthly car payments as ...
8
votes
1answer
152 views

Myth, or not: If using a secured card to build credit, paying off in part each month has more benefit than paying in full?

Does paying off a secured credit card in full each month not allow me to build a credit history? I'm asking because reading about regular credit cards indicates that paying in full helps build a good ...
3
votes
3answers
84 views

Can I draw funds from a personal line of credit to pay its own monthly “minimum payment”?

I can guess the answer to this question, but I can't figure out why. So here goes... I've got an unsecured line of credit with a limit $30,000. The annual interest rate is 6%, compounded daily. ...
3
votes
2answers
331 views

Monthly/Annual Payments Calculation with percentage increase to equal exact dollar amount over exact specified period

I'm not sure if this is the right place to ask this kind of a question, but here it goes. I have the following information: A = Total amount needed B = Number of periods (monthly, 12 payments of ...
9
votes
1answer
243 views

$140,000 student debt. What are my options? Please help

As the title states, I am about to finish my PhD with $140,000 dollars worth of student debt. Assuming I even obtain my desired position—a university professor—my salary will be in the upper $40,000. ...
1
vote
2answers
177 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 ...
1
vote
2answers
196 views

What is a formula for calculating equity accumulated while repaying car loan?

I'm going to buy a used car (maybe a Honda CR-Z), pay for it with a bank loan, then resell it in two years when I move. I'm trying to create a Google Docs spreadsheet to figure out how much more money ...
3
votes
2answers
549 views

What is the best way to pay back a(n unaffordable) private student loan?

Let's say I owe a private student loan of $50,000, and it's already been discharged to a 3rd party for collections. Monthly payments would be several hundred dollars, which is something I cannot ...
1
vote
1answer
195 views

Can student loan minimum payments go up upon full repayment of another?

I am in the U.S. and currently paying off student loans. Here is a hypothetical situation that shows what I am asking about: I have 5 loans (all from one financial institution) of $1,000 a piece, ...
5
votes
1answer
132 views

How do Income Contingent student loan payment plans work?

In order to benefit from Public Service Loan Forgiveness, I need to select a payment plan that leaves a balance on year ten. Thus far I've focused on Income Based Repayment, which is a newer option ...
7
votes
1answer
228 views

Repayment of 2010 First-time Homebuyer Tax Credit

My wife and I received the full $8000 first-time homebuyer tax credit when we bought our home in April 2010, but we're now planning to move. According to the IRS, since we've lived here for less than ...
1
vote
1answer
150 views

PV problem: lump sum payoff or continue quarterly payments

I am is faced with a choice of two alternatives. There really is no right or wrong answer, I just want to hear someone else's input/methodology. Here are the two choices: Keep paying $5,722.56 for ...
11
votes
5answers
677 views

Can I pay a 30 year fixed loan like a 15 year fixed loan?

I'm on a 30 year fixed loan with the following properties: 5% interest No penalty for early payments Pretty recent loan, hardly any equity I'd rather be on a 15 year fixed loan, so that I can pay ...
1
vote
2answers
798 views

How to calculate equal payments based on different interest rates?

Below, I have a cash flow chart showing the loan received ($30000) at the beginning, and three equal payments (amount we want to know [x on chart]), based on their period, for reimbursement of loan: ...
2
votes
1answer
944 views

First time home-buyer incentives require 3 years of primary residence, but can I move if I'm laid off?

My wife and I are 25-months into an FHA loan (we received a first time home buyer tax credit), and I seem to recall that we cannot sell or rent the property for at least 36-months. That wasn't a ...
2
votes
2answers
131 views

Choosing the duration of a loan, how the monthly payments evolve in function of the loan term?

I would like to visually discover how the monthly repayments of a given loan (for a given amount ; taking about a fixed rate loan) evolve in function of the total duration of the loan. I assume it is ...
13
votes
6answers
4k views

Should I pay off my 50K of student loans as quickly as possible, or steadily? Why?

I was an idiot in college. I basically just used student loans and got very few grants. I also spent way too much time in there. I now have two bachelor's degrees and a master's degree. About 7 ...
7
votes
4answers
182 views

Is there any circumstance in which it is necessary to mark extra payments on a loan as going to “principal and not interest”?

I've heard for years - and not believed - that it was necessary to mark extra payments, clearly targeted towards a particular loan, as "apply to principal" or any other such magic wording in order to ...
6
votes
7answers
821 views

Reducing mortgage term by paying off a chunk of the principal each quarter - how effective is this?

A family member once told me about a method for reducing the term of a mortgage "significantly". They didn't know (or I can't remember) the details but it had to do with certain mortgages that ...
7
votes
4answers
641 views

What do you do when a family member won't pay you back?

What do you do when a family member won't pay you back?
15
votes
2answers
2k views

Paying off student loans early/lump sum — best practices?

My wife & I have run into a large sum of cash recently and are interested in paying off/paying down our student loans -- about $30k between us, at about 6.5% avg interest. We're both earning ...
6
votes
1answer
271 views

What happens when you make extra payments but don't specify principal reduction?

Lets say your loan payment is $100 a month. What is the differences between: making a regular payment for $120 making a regular payment for $100 plus an additional principal reduction payment for ...
4
votes
2answers
269 views

Paying off loans early, or is there some way to reduce extortionate interest charges?

I bought a car about 2 years ago on finance. The car was priced at £11k and I was very quick to jump at the chance rather than thinking. Over the 5 year period I'm paying over £18k in total, thats ...