Questions tagged [loans]

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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2
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2answers
105 views

I paid off a car loan early, but it was reported on my credit score as "closed" bringing it down. Shouldn't paying off that debt increase my score?

I paid on it for at least 3 to 4 years. It was reported as a "closed account" instead of paid off in good standing. I called the creditor and customer service ultimately send me a letter ...
0
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1answer
35 views

Which days count when daily rate is used to calculate interest?

Say you get a loan on Jan 20 with monthly payments due 15th every month. You have the money in your hand some time in the middle of Jan 20 already, that’s the day when the contract came to existence. ...
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0answers
18 views

How are SBLOCs typically paid back?

I've read several articles about Securities-Backed Lines of Credit, and none of them talk about typical loan terms other than the low interest rate. Apparently it's common to repay the interest ...
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1answer
42 views

Federal Perkins Loan is showing up unsubsidized despite not taking any unsubsidized loans

I've been repaying student debt and my university recently sent a loan that I didn't know I had to a collection agency. The loan is listed as a "federal Perkins direct Stafford" loan that is ...
0
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1answer
88 views

On what basis do countries repay international loans? [closed]

Most countries have their own sovereign currency. Essentially they can print their currency. So how do countries repay their loans? And a similar question would arise while granting a loan to another ...
0
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1answer
147 views

Is the holiday season an unwise time to apply for credit?

Given the rise in consumer spending during the holidays, do lenders mitigate the increased demand for credit by offering lower credit limits than usual, or having stricter criteria for approval?
2
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0answers
132 views

How does “Velocity Banking” actually work?

I’ve seen this mentioned a few times now in various financial articles, but it smells like some kind of “system” a gambling addict would come up with to “beat the house”. Doing a web search on it, I ...
0
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0answers
95 views

Are indexed universal life insurances of any use from a tax mitigation standpoint (= looking at after-tax returns) vs. a regular investment account?

I am a US lawful permanent resident. I am interested to know whether indexed universal life insurances have any upside from a tax mitigation standpoint compared to a regular investment account. I.e., ...
1
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2answers
376 views

Why doesn't just everyone mortgage a property from bank, rent it out and make monthly payment to the bank by that rent?

I don't have any background of loans and finance since I am an Engineer, but I have been planning to own a property lately. What I understood from my research is that there are two options to get a ...
0
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2answers
224 views

Better to withdraw from 401k or take out home equity loan for investment opportunity?

There is a fast-approaching investment opportunity (January) that I very strongly believe will have significant short-term (2x - 5x within a matter of months) and long term returns. I need ...
0
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2answers
123 views

How to prioritize paying back loans based on interest?

If I have a loan at 0% and can get a 7% return on my capital, then I wouldn't want to pay back that loan until the absolute last moment. If I have a loan at 14% and can get 7% return on my capital, ...
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2answers
156 views

Could a bank take out a loan from another bank?

It costs a lot of money to start a bank from the ground up, for obvious reasons. To get this starting capital, unless the person starting the bank is already wealthy enough to pay for it themselves, ...
0
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1answer
78 views

How can one debt-finance a corporate takeover and then transfer debt to the company? [closed]

I'm reading about the Glazer family's takover of soccer club Manchester United nearly two decades ago. They apparently debt-financed their takeover, borrowing hundreds of millions of pounds, and some ...
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0answers
60 views

What are some of the factors that affect loan pricing?

In an interview for a bank, I was asked about some of the factors that could affect loan pricing. They asked me which of the following factor should not affect loan pricing: credit rating of sponsors;...
0
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1answer
86 views

Taking home loan and car loan separately with some down payment or taking one loan without any down payment. which one is good?

Am from India and planning to buy a house and a car. I have ~10L in my hand. House costs around 36L (Including Registration and other charges) and car cost around 11L (on-road price). So paying down ...
0
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1answer
85 views

Are there any loan options for the international students in the US? [closed]

I am an international student of one of the university of California campuses. I study PhD and am a fully funded student with around $30,000 annual salary(before tax). I need about $5000 in cash and ...
2
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2answers
116 views

What is the procedure of getting an auto loan?

I am a new international student in the US. My credit score is 702 in the Capitalone credit wise and 710 in the CreditKarma website. I am a fully funded PhD student and have an annual income around $...
0
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0answers
64 views

Loan Payment Formula Terminology

Consider the following formula: Payment = P * ([r * (1 + r)^n] / [([1 + r]^n) - 1]) Do any parts of this expression (not single variables) have a name? For example, (1 + r)^n repeats. Is there a name ...
0
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1answer
59 views

Calculating Total Interest on Loan

I have found some sites stating: Principal * Annual-Interest-Rate * Term-Length-Years ... but this does not calculate the total interest paid correctly. This formula neglects a shrinking principal ...
-3
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2answers
156 views

How do banks balance the books after a borrower defaults on loan repayment? [closed]

Buyer gets a 10k loan to buy a tractor from Seller. In the banks' books: Buyer Assets Liabilities 10k deposit 10k repayment later Bank Assets Liabilities 10k repayment later 10k deposit for Buyer ...
18
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8answers
8k views

Can I take out a loan and pay it back immediately to avoid interest?

Ignoring why I would do so, I am wondering if it is possible to take out a personal loan (at, say, ~6% annual interest) and then pay back the principal + any interest back within a short time (within ...
6
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2answers
2k views

How to write down each month borrowing over past month

Since Pandemic I had lost my job and borrowed money or money sent by my parents from saving but I couldn't write it down as I am financially illiterate/bad with maths. Now and in past, it has caused ...
0
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1answer
133 views

Why do business loan interest rates vary that much?

this might be a very basic and stupid question, but I've just recently started considering bank loans for my business (Covid...) and I have no experience with this world whatsoever. I've noticed that ...
39
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13answers
12k views

Is there a price point beyond which it no longer makes sense to buy an apartment or house?

I am in a very frustrating situation right now. I have accumulated a decent amount of value in cash and stocks. My wife and I however are still living in a rented small flat in our town in Austria ...
1
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0answers
77 views

Repossession fee refund after 8 years [duplicate]

2013 our car was repossessed by WellsFargo Dealer Services It was sold at auction and fell off my credit report this year. Today I received a check for$125 from an over charge of the repossession fee. ...
1
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2answers
185 views

What are the legal and tax implications of crypto lending?

With high interest rates for crypto loans, I'm currently thinking of lending out my cryptocurrency on a crypto lending platform like Celsius Network. However, I'm not too sure about the implications ...
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4answers
3k views

Would being a co-applicant on a loan have any impact on minimum payment each month?

My mother and I are considering getting a loan through the Dividend Finance programme to have a solar panel installed. My mother filled out the primary applicant section of the application and is ...
1
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0answers
57 views

Avalilability of very short term loan options for non-salary individual in India

I am a student and I have a non-salary account. I mean, I am not getting salary and getting money every month as scholarship. The amount I am getting as scholarship is not less and is at-least ...
1
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1answer
57 views

Remaining Balance Formula for Actual/360 and Actual/Actual Accrual Methods

Is there a concise formula for calculating the remaining balance of a loan with actual/360 and actual/actual accruals? I know for 30/360 amortizations, the remaining balance is just the FV of the ...
1
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1answer
116 views

Formula for time taken to pay off loan with annual interest and monthly repayments

I am trying to find how to work out the period of time it will take to pay off a loan. There are plenty of online calculators out there but I cannot find the formula they use. I want to recreate the ...
0
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0answers
46 views

Do collateralized loans impact your credit score?

Do collateralized loans impact your credit score? Such as a securities loan collateralized by your stocks, a refinance on your home, a personal loan collateralized by a car, and so on.
2
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1answer
142 views

How fast will my credit score increase?

I have 12k in students loans (all of which isnt required to start making payments until Q4 2021) owed to non-government lenders, and have roughly a 1.5k credit balance currently, with 3 lines of ...
1
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1answer
63 views

What happens to the dividends when you enter into a securities-based line of credit or "portfolio loan"?

For this example let's say you have a stock portfolio that is paying you dividends and you take out a securities-based line of credit against the portfolio from your local bank. What happens to the ...
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1answer
158 views

Is buying a mortgaged property profitable?

I am planning to buy a property and wondering if this property is worth buying. A. Price of property including everything: Rs 45 lacks B. Down payment: Rs 5 lacks C. Loan/Mortgage (C = A-B): Rs 40 ...
4
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1answer
419 views

401K Loan - Company switched providers and rules

My company (a large health co) merged with a larger Pharm Co. In this process, we basically got all the Pharm Co benefits. When with the health co, I took out a 401k loan which had the provisions that ...
2
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2answers
266 views

What is the cheapest way to pay off this loan?

I recently took out a loan in order to buy a car for work. The contract is over a five year term, with a total of 60 monthly repayments, at an interest rate of 13% pa. The way the lender wants me to ...
2
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2answers
76 views

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 ...
0
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1answer
220 views

If the loan interest is lower than inflation rate, does it mean it would be less expensive to take a loan and spend now, than save to buy later?

I am considering to buy an upright piano. For that, I have been planning the budget I would need and how much I would have to spend/save to be able to buy it . A few things to consider: The piano ...
0
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3answers
320 views

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 ...
2
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1answer
170 views

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 ...
1
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1answer
93 views

Would a hypothetical, ever-appreciating asset allow for infinite collateralized loan-rolling?

If I owned a hypothetical asset that was deemed extremely safe, and permanently increased in value over time (allowing me to borrow a similar percentage of the asset's value each time the loan reached ...
4
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2answers
133 views

Taking out a 401K Loan vs. Liquidating Investments - what's better?

Let's assume the following: I need $50K for various expenditures (aka simply spending, not paying off CC debt or putting the money somewhere else). I can either liquidate regular taxable investments ...
2
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1answer
131 views

How does 401k loan default after you left your job?

I'm trying to find some basic answers here but having a very hard time. I have a job currently and I'm about to lose it. I have pulled out a 401k loan and paying it back through the payroll deduction. ...
0
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0answers
84 views

My parents live in England. I live and file taxes in the US. I want to make them an interest free loan to buy a house. Payable at death / house sale

I considered purchasing it as joint tenants in common but that triggers stamp duty on the entire purchase as I’m a non UK resident. I thought they may be able to amend their will to represent the ...
0
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1answer
85 views

What is a difference between "Tender Offer" and "Tender & Offer"?

Would someone be so kind to please answer me on two different questions: First: I'm aware tender offer has something to do with getting the stocks directly from shareholders, according to some ratio, ...
10
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3answers
2k views

How do I know whether zero-percent finance or bank loan is cheapest option?

I have been considering purchasing a car. There are two methods I use to pay for it: Method 1: The advertised price is $6,000 but there is a “Zero Percent Finance” offer that the shop has ...
0
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2answers
168 views

Can my property be taken as a payment for a relative's loans?

My aunt went to several loans to which she isn't capable of paying as of now. Now, the lenders are visiting our house and trying to find her and she currently lives in the same residence with me, ...
9
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4answers
4k views

If I pay off a lien on a car, do I own that vehicle?

My boyfriend and I have been together for 13 years. He has been separated from his wife for 20 years. He has a lien on his car, and he did not will it to anyone. If I pay the lien, do I own it?
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2answers
96 views

Bank treating loan as asset

I understand bank treat loan as asset but isn't it the cash reserve being transferred from bank to borrower, resulting in reduction of cash reserve of bank and hence reducing its lending power. From ...
-4
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2answers
217 views

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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