Questions tagged [borrowing]
The borrowing tag has no usage guidance.
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Borrow from 401k (and pay interest to myself) or take a loan from bank (and pay interest to the bank) to buy a car?
Should I borrow against my 401k at 6% interest rate (which I pay to myself) or take a loan through a bank at 3.5% interest rate (which is paid to the bank)? Buying a car for my kids and can't afford ...
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Why don’t broker-dealers borrow against their clients’ stock holdings instead of lending them?
From what I understand, a common business line of brokerages is lending out the shares of their clients while they are sitting idly in their accounts. Average borrow rates of blue-chips are around 0....
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Can you borrow foreign currency from local banks?
Do local banks allow you to borrow in currencies other than the local currency? If so, would the financing rate be different depending the currency?
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How does Buy Borrow Die work? [duplicate]
I discovered this interesting article by ProPublica on tax strategies of the ultrarich.
It boils down the strategy to Buy Borrow Die.
The idea is you have tons of stock you don't sell. You borrow ...
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Borrow and return HSA funds in same tax year - taxes and/or penalty?
I've had an Health Savings Account for several years now, and I know I can only take out funds from it for qualified medical expenses.
I'm wondering if there will be any taxes and/or penalties if I do ...
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How can such a thing as a "fully collateralized" Bitcoin loan exist?
Let's say I want to buy a house, but I don't want to spend any of my 10 BTC. So I want to borrow 1 BTC.
In order for me to not be able to scam whoever lends me that 1 BTC, I have to "fully ...
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Can I use my lot as security on a credit line?
I purchased an empty lot next to my house. I'm very glad to have it, but I did naively think that perhaps that I could use this lot as something like a credit card. Using it as collateral for a ...
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Can I return money to parents even when we didn't have a formal agreement in the US?
For example, if I return US$30,000 to my parents, considering that they lent me money for my university tuition, can that be considered to be returning borrowed money, even though there were no formal ...
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Do rich people never have to pay back what they borrow with their wealth as security? Does the same apply in my case?
I heard something very interesting today. Apparently, people who are the descendants of early New York City plot owners, never sell their land. Instead, they borrow money from banks (or some entity) ...
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Ownership % and obligation on mortgage payments
scenario: Home value is 800K.
Three investors requiring a mortgage.
One investor can add 70K deposit,
Two can add 40K each.
Question #1: How do I figure out the % of ownership based on different ...
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Is it possible to use securities as a collateral?
I own about 200k worth of ETFs(SPY, VOO, QQQ, ONEQ, VCLT, VTWO, VT). Is it possible to put them down as collateral for a loan in the future? I need money for two things in the future:
Getting a US ...
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Why would anyone borrow using a DEFI (Decentralised Finance) platform?
Introduction
DEFI lending platforms like Aave are decentralised finance protocols which enable anyone to either lend their crypto-assets (usually ethereum) for high % interest, or lock up their ...
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Does short sale borrowing rate change during the term of the loan?
If I borrow shares to short, and the initial borrowing rate at the time that I open the position is 10%, will that be fixed until I close the position? i.e. if the borrowing rate increased to 20% ...
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Can an individual borrow directly from the Bank of England (or any central bank)?
How it normally works is that individuals can apply for loans from high-street banks, who charge an appropriate level of interest.
The banks get the money from savers' deposits - and also they may ...
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Why would creditors accept a comfort letter that can't be legally enforced, from borrowers that refuses to guarantee?
Prof Richard Taylor, Damian Taylor. Contract Law Directions (6 edn, 2019). p 65. Para 1.
You might be wondering why businessmen bother to make an agreement
if it has no legal effect—is it worth ...
user85969
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Best way to get my money back from a friend having family problems
Back in 2018, in June, a friend working in the UK (let’s call him Dave), asked me to lend him money because he has “family problems” mentioning he will return them by August, 2018.
Things did not go ...
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Understanding pledge, mortgage, and collateral in home buying
I am trying to better understand the terms pledge and collateral, in home buying.
My understanding is that a Pledge is usually a pawn or piece of property used to secure "financing". When I try to ...
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Is it required to mention money returned by friend in ITR filing in India?
I live in India. For a long time I was giving money to my friend as he lost his job; there was no other option for income. But later he got job so he returned all my money recently into my bank ...
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Canada: Borrow to Invest in RRSP?
I've a credit line that charges a 2% fee to borrow money and no interest charges for 8 months. I've used this facility before for high value purchases and have not occurred any hidden fees / payments ...
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How to show in income tax filing a loan taken from friends to repay home loan?
I took home loan from PNBHFL of 20 lakhs. Due to various personal reasons (to clear my debts) I sold my house. I purchased it in August 2016 and sold it in January 2019. I sold it for 40 lakhs.
...
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Definitions of borrowing / lending long-term & short-term
What is short-term & long-term? I read that it is investments of short period (less than one year) and long period respectively, but I cannot realize then what means borrowing/lending short-, long-...
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How to get a really tiny loan when self-employed? [closed]
I am newly self-employed and need a pinch of money to resolve some current loans. I need only 100 to 200 dollars on short notice -- has to be deposited to bank so a credit card cannot help.
I have no ...
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Why don't corporations borrow from their savings? [closed]
Here is a question I have had for a long time:
Most companies typically sell stocks to raise capital or go to the bank for a loan. But doing the latter - at least to me - puts the company at a ...
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Does borrowing from my 401(k) make sense in my specific circumstance?
I know the standard answer and understand that I will be losing out on that compound interest, but I am young and only need to borrow a few thousand. here are some more details:
Need to borrow $6500 ...
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Are my parents ripping me off with this deal that doesn't allow me to build my equity in my home?
When I bought my condo with cash for $155k, I paid $40k of my own money and my parents lent me $115k. Our agreement was that when I eventually sold the condo, my parents would get 75% of the gross ...
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Borrowing money and then investing it -- smart or nart?
I don't intend to be honest with the lender with what I plan to do, but I seek to borrow ~$250,000.00 with zero collateral and use that in high-yield investing to bank around 10-12% back a year, which ...
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Does compounding interest on a loan matter if you pay all the interest accrued each statement?
Several answers on a question about recalculating interest when paying off a mortgage early mentioned how their examples didn't account for compound interest, which would complicate things. Is this ...
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How can I borrow in order to improve a home I just bought?
Let's say I just bought a home for around $200,000. It appears that if I put $25,000 into it in order to improve the parts that need it (furnace, roof, driveway, some basic home renos) I could bring ...
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Borrowing from my 401(k) for a home purchase downpayment?
I have money in my 401(k) I am investing to federal limits for both myself and my wife and I am primarily planning to use this money for my first house downpayment and my thought process is as below:
...
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How should one refuse to father in law (Chinese) when he wants to borrow money? [closed]
I’m 24, male was born in Western Europe, currently living in China. The main reason why I’m in China is my girlfriend who I met back at my home town and she happened to be Chinese. I’m full time post ...
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Borrowing money for investment
What do you consider the best way to:
Borrow money from private investors against a fixed interest rate
Use it to trade, yielding a higher return than the interest rate
Pay off the investors with ...
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Should I charge my children interest when they borrow money? [closed]
My children (both male, ages 25, soon to be married, & 32, married) have borrowed money from me and my wife on several occasions. They have yet to pay us back what they borrowed. We have never ...
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How to buy a house in the United States using money from a foreign loan?
I am a US resident. This scenario involves 3 entities.
I want to know what would be the situation (legal and cost) if I can borrow money (complete value of the house Eg: 500 K) from a person or a ...
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Tax implication of loan from Korea to US
I'm trying to borrow a large amount of money to buy a home from a friend in Korea.
Is there any tax implication in this case? And is there any limit on the amount?
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Home Equity Line of credit features and overview
I have a very recent mortgage. I only have about 7% of equity on the home. I've made about 5 payments so far and everything is going smoothly.
Now I have a family emergency requiring me to borrow ...
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Borrowing from my brother for the downpayment of house?
I am looking to by a house real soon. I definitely want to avoid PMI and put down 20% which amounts to about $100K of initial payment. I have no debt whatsover (no credit card/student/car loans). I ...
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UK - Borrowing house deposit from parents
We are thinking to buy a house and our parents would like to help us with the deposit (as we don't own that sum). The idea is to give the money back someday.
Now the questions:
How do my parents ...
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Is it ok to go to mortgage underwriting with two different lenders at the same time?
I am in a situation where I need to get a mortgage in a short period of time. My situation is unique and I want to make sure the mortgage gets approved. I started working with a small bank and it died ...
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What can i use as collateral for a secured line of credit except my home
In Canada, a very common type of secured loan is a HELOC (Home Equity Line of Credit).
Now, what else except a home can I use as collateral for a Secured Line of Credit?
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What does it mean to borrow long and lend short
What does it mean to borrow long and lend short?
I took a mortgage from a bank and I opened a savings account with the same bank on which I get interest. Did I borrow long and lend short? Or did the ...
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Lend money at a rate linked to the prime rate
Are there any fixed income investments for retail investors that offer a rate that is fixed to the prime rate (like : prime - 1%).
Usually it is easy to borrow money at rates that are linked to ...
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Personal Loan issuer online service
I have chunk of money that I would like to loan to my brother. I would like to charge him interest same as banks do.
Is there a website or online service where I can enter the "loan" amount, ...
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How to calculate how far a stock price can drop before a broker would issue a margin call?
Let's say the margin requirement for a stock XYZ is 50%. The current price of XYZ is $150/share. Let us say I put in $100, and borrow $50 from the broker to buy a share.
Typically, how far can the ...
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Borrowing money for a semi-urgent medical expense
I need to borrow some money to pay for dental work. This will be my first time taking on debt independently. I would like to repay my dental debt at a reasonably pace without hurting my credit score. ...
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If I use stock as collateral for a loan and I default, does the bank pay taxes when they sell my stock?
If I need $x as cash, I can borrow from a bank, using some stocks I own as collateral. Thus I receive $x cash which is not subject to taxes.
When the time comes for me to return what I've borrowed, I ...
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Is person-person lending/borrowing protected by law?
Suppose that individual A lends his money to individual B.
In order for A to be protected, what does he need to do? Is his lending protected by law?
(I would prefer to hear the general case, but if ...
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What are some good options for getting a short-term personal loan?
What good short-term personal loan options are there, for someone who will soon have ability to pay them off? (I'm looking for names of institutions, like "X lending company", Wells Fargo, etc.)
I'm ...
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Short-selling treasuries instead of borrowing on margin?
Let's say I have a diversified investment portfolio, and I wish to tap a relatively small amount of cash (less than 5% of the portfolio's value) without liquidating any of my positions.
I could ...
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Where can I borrow money for investing?
Where can I borrow money in the US if I have a good credit (730+)? I have heard community unions a good place to borrow money..but the lowest they could get is 12 percent. Can I borrow from a ...
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If I co-sign a loan, does it affect my own ability to borrow due to the debt-to-income ratio?
If I co-sign a loan (e.g. for a friend or family member), does it affect my own ability to borrow money due to the debt-to-income ratio?
user454