Questions tagged [lending]
The lending tag has no usage guidance.
51 questions
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Are there any amortized home mortgage loans where the monthly payments are distributed equally between interest and principal?
Are there any type of home mortgage loans where the amortized monthly payments are equally distributed towards the interest and principal? I understand this would violate the current formulas used to ...
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Are banks willing to lend money to one-man APP startups?
I am one person building a social-media-ish APP. I am 2 years along. Let's say that it's 90% finished.
How do you get a bank to lend you money for this APP?
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US: tax on revenues from loans (I'm the lender) and other services?
I have some spare money and would sometimes loan it to strangers in need on the internet. Let's say that I loan $100 and get $150 back after 5 weeks. Only that $50 should count as my income right? And ...
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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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Lending money to strangers
A person I met online came to me asking for $200. He said he needed it to pay for a very important bill and he will pay it back on Monday. He also said he wouldn't be able to provide any liquid ...
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How would this trade be taxed?
I am wondering about the tax implications for the following scenario:
Say I am domiciled in the USA and have some stocks, which I think will go down vs USD. Rather than sell them and buy back later (...
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Why would you risk bankruptcy if you lend more money than you own?
Difficult to summarize the question in just a few words, so let me elaborate here. I am currently reading the Financial Times Guide to Banking by Glen Arnold, section Money creation, and there is ...
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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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Difference between a checking and savings account
I'm aware that savings accounts in the US are restricted to 6 withdrawals per month, but what differences exist aside from that?
From what I understand, both are FDIC insured, meaning there's ...
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Have I correctly understood the logic of lending money to a bank? [closed]
Let's say that I am able to convince my local bank to borrow 1 Bitcoin from me today, with them allowed to hold it for at least a year before I am able to ask them to give it back. After a year, if I ...
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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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How does a bank lend your money while you have constant access to it?
How do banks / fintechs lend your money while you have constant access to it, ie. can withdraw at any moment? I assume there is some kind of liquidation pool, but how exactly is that managed with ...
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Can you hire a cosigner online? And does it work? Has anyone tried it? [duplicate]
I am looking to hire a co-signer online for a loan that’s been approved pending co-signer approval. I completely comprehend that my financial assessment is sketchy however I would like to offer some ...
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What are the implications of ETFs lending out their holdings?
I've noticed some ETFs describing how they can lend out their holdings, usually for some amount of collateral (cash, U.S. government securities, stand-by letters of credit, etc).
If we take GDX, for ...
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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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Lending someone 500 dollars
Consider a hypothetical situation. Person A lends person B 500 American dollars on 0% interest. Now American government prints more money such that the old 1 dollar is now equivalent 10 new dollars.
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I borrowed in Ruble and should give back ruble but I use euro, when to change?
I borrowed equivalent of 71,490 Russian Rubles in 1000 euros, 4 months ago. I have to give this money back in 5 months. The exchange rate for Russian Ruble apparently is going down and now is around ...
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Parent asking for money after I moved out
My parents are divorced and my dad has to pay to my mom financial support for everyone in the family. Because I moved out, my dad removed part of this financial support that he gives my mom. She is ...
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How securities lending works
After doing some research, literature suggests that "most" securities lending happens over the counter as opposed to securities trading which is mostly done through a centralized electronic exchange.
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Can I lend a small amount of my own money to a bank at the federal funds rate?
I have a dollar that I won't be needing tonight, and I hear that banks are in the market for short-term loans. In fact, the present Fed funds rate is higher than the interest rate on any savings ...
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Bad credit, 50k cash, how do I buy a house?
Due to a personal circumstance, I was unable to pay my bills for about 6 months and it took my credit score from a 720 to 520 (repo, charge-offs, and collections). I now have about 50k in the bank, ...
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I need a tiny amount of money right now, but I can't find lending options. Why don't lending services cater to those who seek very tiny loans? [closed]
I'm looking to drop $20 in the stocks now, but I don't have this money currently available. Is there any kind of micro/nano-loaning service where one can borrow a very small amount of funds and pay ...
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ETF asterisk clause meaning
I'm choosing an ETF, and reading this KII document, I'm not sure what this sentence means.
Can anybody expand this language with an example?
Is this typical for an ETF?
To the extent the Fund ...
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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 money back I lent my sister? [closed]
Five years ago I lent my sister 20,000 and she said the bank needs it down as a gift and now she won't pay it back. Is there anything I can do?
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What does indirect lending mean?
I found a webpage for a credit union that says that they do indirect lending. I can't understand the process. What does this mean?
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How do you calculate a monthly loan payment when using Actual/365 or Act/Act day count convention?
It is pretty easy to figure out a monthly loan payment based on the standard formula, when using a 30/360 method, because the monthly interest rate is always the same since each month has 30 days.
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Can loan for mortgage be declined after receiving both approval letter & commitment letter
What is the difference between mortgage approval letter (not pre-approval) & commitment letter?
commitment letter according to this source:
A loan commitment letter is an indication that the ...
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Is there a difference between a 360/360 day count convention and a 30/360?
Are these just different names for the same thing? Lending Management Software company told me their software does not do 30/360, but could do 360/360 which would be the closest match. I am thinking ...
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What are the currency rules when lending money to a friend?
Let's assume Alice lends 5000 EUR to Bob for three months (because that's what Bob asked for). But Alice's bank account is in USD.
So, on 1st of January 2018, Alice looks at the exchange rate of EUR/...
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What is Hosted Staking? [closed]
There are few ICOs are using Hosted staking as a term rather Lending.
I want to understand what is this hosted staking and how it works.
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Is it possible to borrow money to accrue interest, and then use that interest to pay back the borrower + fees?
Say I want to borrow $225,000.00 to accrue interest on a 1.20% APY account. I promise the lender that I'll pay them a fixed-rate of this interest with agreement that I cannot withdraw nor touch the ...
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Looking to buy a property that's 12-14x my income. How can it be done?
I currently have insignificant income due to the fluctuations of my line of work -- entrepreneurship.
I do not have any steady income and can't guarantee minimums always -- but I have done some ...
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How does a bank make money on an interest free secured loan?
I was having a discussion about the ethics of charging interest on a loan, and I was of the position that allowing the charging of interest encourages more loans to be given, and thus contributes to ...
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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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What are my options if an investment that is too good to be true goes bad?
I am pondering on whether I should pursue this investment. I have a guy who wants me to invest only $1,000 dollars with a contract that I'm guaranteed 600% ($6,000) the same year, no questions asked.
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Mortgage question: Which banking terms mean "lends smaller amounts" or "offers small mortgage loans"?
Despite many phone calls I haven't been able to find a lender who offers home loans under 100k USD. Which banking terms are used to specify lenders who do "small" mortgage loans? I'm going with an FHA ...
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Are unknown lenders safe to use?
I want to refinance my mortgage, so I went searching for rates and a typical page on BankRate looks like this:
These rates are a good half a percent less than what's offered by the major banks, but I'...
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How do credit card companies make money from cardholders who do not carry a balance? [duplicate]
How do credit card companies make money from cardholders who do not carry a balance?
It seems credit card companies are eager to offer their services to borrowers even if they have a tendency to pay ...
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What's the logic for the length of service (employment) criteria for mortgage applications?
On a mortgage application, what's the logic - and is there any evidence for it - regarding longer length of service being 'better' for an applicant?
I can understand if you've only been in the job a ...
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First Mortgage - Finding a Lender
I have been looking for a home in the US, I am a first time buyer and was wondering if someone with more experience than me can recommend ways to find a good lender? I started off by talking to my ...
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How to get back the money that you lent someone? [closed]
I lent a friend a few hundred dollars a couple of years ago. Initially, he agreed to pay me back in a few months, but it never happened. The only evidence that I have is my check slip and also a long ...
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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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Lending Club - Interest rate and interest received compared with total payments discrepancy?
I have a Loaner's Lending Club account. There seems to be a discrepancy between some of the numbers on my account (the discrepancy would be in my favor, I just want to know why they are the way they ...
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Is it impossible to get a home loan with a poor credit history after a divorce?
I am a very recently divorced single mom. I own my small farm which we cannot live at due to my ex-husband's continued harassment.
I have the farm for sale but so far all interested parties want/need ...
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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 ...
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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 precautions should I take when lending money to a friend?
I'm thinking of helping out a friend by lending him some money (~ $10k). I totally trust him, but I still have a feeling that I should have a contract or something similar.
Are there standard ...
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Peer-to-Peer Lending (Prosper, Lending Club)
I've been debating the idea of doing peer-to-peer lending. I saw this question and am curious:
What kind of success/failures have people seen from P2P lending?
Some sites require their users to have ...
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