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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Why is an amortized loan an annuity problem?
I am currently learning about amortized loans and my textbook models it as an annuity problem. For example, supposing someone takes out of a loan of $25,000, with an interest rate of 8% to be paid ...
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Cosigner/cobuyer
A dealership put me down on a car loan as the primary buyer when I only was going to be cosigner for my nephew, and put him down as cobuyer and cosigner. Is that legal? And what should I do? And my ...
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Why does the loan company require I have $250;in my account so they can deposit the loan?
I got approved for a loan but the company is requesting that I have $250 in my cashapp acct so the loan can be deposited in to the account. Is that normal or is it a scam?
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How do the ultra wealthy save money by taking out loans instead of selling their stock? [duplicate]
From this NYT article (https://www.nytimes.com/2024/08/29/us/politics/donors-harris-tax-ultrawealthy.html):
"The billionaire minimum income tax could be particularly costly for ultrarich tech ...
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Paying Extra thinking it goes to principle but it doesn't
I have a high interest loan and I am trying to pay it off asap. My Monthly payment is 571.00. I pay 175.00 a week. I always thought the extra would go toward the principle but they put it toward ...
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If I put up money for someone else to take out a secured loan, is that also considered a loan? [duplicate]
There is a similar question, Can a friend put up collateral for my secured loan?, but since I can't add a comment and my question is slightly different, I decided to create a new question:
If I ...
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Calculate which loan to pay first
I have 2 loans (mortgages) and wondering how to calculate which one to pay off first (there are some special conditions):
Loan A:
260.000€ over 35 years. 3,75% p.a. (4,1% p.a. effective), ~1180€/month ...
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A loan company wants to loan me money & wants to deposit $400 in my account for verification. Scam or legit?
A "loan" company contacted me saying I was approved for up to $4,000. The man said I needed to allow them to deposit $400 into my account to verify my account.
Then, he wanted me Cash App ...
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Does a bank have to confirm that I do NOT have a loan application in process?
After applying for a home equity line and not accepting a counter-offer, I would like a bank to send me an email like this:
We do not have a loan application currently in process for you. Sincerely, ...
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Kiwi Lad In Need [closed]
So I’m based here in New Zealand. I would like to know how I could raise $1000 in a few hours? Sadly without notice I laid off yesterday. On top of that I suffer from depression and anxiety, due to ...
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Fair interest rate on $2k personal loan to a friend
A friend wanted to borrow $2,000 from me and he promised that he would pay it back in a month. I'm about to lend him the money. How much interest should I charge that would be fair? I am not expert ...
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Car loan pre approved but not finalized [closed]
I bought a car on April 11 2024. I was pre approved . Car dealership did not finalize paper work. My loan sitting in pre approval. Car dealership closed
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How can a senior finance building a home with no current credit score but good equity in current home?
Many seniors have paid off their mortgages and car loans and haven't needed to borrow money in years, hence have no current credit score. Senior wants to downsize home but there is nothing suitable on ...
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How to calculate the very last payment when repaying a debt?
Suppose I'm repaying a fixed amount every month on a debt such as a credit card debt.
Generally, the very last payment will be less than the others, because the total owed will be less than the fixed ...
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Do lenders consider stocks and bonuses as part of your income?
Most tech companies give their employees a basic income plus a certain amount of stocks plus annual bonuses.
I am wondering if someone has a $120k salary + $50k stocks + $50k bonus in a year, would ...
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How much does having an installment loan in your credit history matter vs simply having a good credit score?
Let's say you want to buy a starter home (at a reasonable budget for your income level) and have an excellent credit score of ~800, but you have zero history of taking an installment loan (student, ...
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Is it a good idea to take a loan just to build borrowing history? (United States)
Context
My current car, a hand-me-down from a family member, is 10+ years old with ~100k miles and starting to have enough problems that maintenance costs are quickly piling up. Over the last 2 years ...
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Confusion with payment calculation for fixed payments on fixed interest loan
I'm trying to understand how to calculate the monthly payments on a fixed interest loan with a given term. I understand this can be done with the PMT excel function.
Whenever I see this explained ...
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Which loan would be most cost-effective to service first?
I'm currently the debtor of two loans:
$620,000 CLP at 0.99% monthly interest, to be paid over 12 equal monthly instalments, starting this month.
$180,000 CLP at 0% interest, but adjusted by ...
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Who is actually receiving the loan?
Before signing for a guarantor loan for the first time, in reading the contract I'm confused by this wording
Your payment schedule will be:
Number of Payments; 24
Amount of Payments; $ 177.13
When ...
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Home renovation payment: Loan with interest, lump sum with discount or quarterly payment with no interest
I have a home renovation that would cost me 50k. The company offer me these options:
50k 15 years loan with 3% per annum fixed interest (monthly repayment)
45k lump sum with 5k discount
5k quarterly ...
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How to calculate monthly payment of a loan
I am trying to solve this question:
Your brother-in-law asks you to lend him $100,000 as a second mortgage on his vacation
home. He promises to make level monthly payments for 10 years, 120 payments ...
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1
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To what extent do restrictions on loans apply?
This is more just a curiosity than an actual real-world problem, but I noticed that most personal loans come with caveats like not being used for business purposes, buying property, stocks and shares, ...
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How exactly does a biweekly payment schedule on your mortgage reduce the amount of overall interest paid over the life of the loan?
Here is how a normal fixed-rate monthly amortization schedule is calculated:
First we determine the total monthly payment:
Payment = [P*(r / n)(1 + r / n)^nt] / [(1 + r / n)^n*t - 1]
where n = 12, P ...
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Loan: calculate number of monthly payments with fixed annual interest, fixed montly payment, and 1 additional payment per year
The situation is the following. Consider a loan of 430,000 units (dollars or whatever).
The client will pay 10,000 units per month.
The client will pay an additional 70,000 units every 12th month of ...
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Proceeds of house sale for study loan
Sale of House proceeds is 50lacs. profit from sale of property 15 lacs.
I have student loan 30 lacs.
Should I pay student loan first or buy property. My all transactions are in in INDIA.
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Which mortgage should I pay off first? Same interest rate and mortgage length
tl;dr:
I have two amortized mortgages; one big and one small.
The conditions (interest rate and mortgage length) are exactly the same.
Which should I pay off first?
I have always heard that you ...
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How to solve amortization schedule where 10% of the interest is paid back on 4th payment
I am trying to find an algorithm to solve this amortization schedule:
P = 1000, term = 12 months, Interest=5%, calculation based on actual/365.
10% of the total interest of the loan is added to the ...
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Are all my sources of income considered when calculating the repayment of my student loan?
Actually, I have two questions.
I have a student loan income-based repayment, from my studies in the UK. Are any other income sources rather than my salary considered?. For example, a rent I get from ...
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How to calculate how much more paying off a loan with extra principal payments saves vs extra payments?
So I recently wrote my loan provider on whether the extra online payments I was making were applied directly to principal and it turns out they were not, they were just treating it like extra pre-...
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If loans are sold at discount to other lenders, why isn't the same offer given to the debtor for payoff?
Let’s say I have a loan at 3% for 10years for $100,000. After one year rates in the Loan market rise and are at 6% for the same type of loan. Why wouldn’t the payoff amount of the loan be discounted ...
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IRA withdraw penalties vs interest rates today
Here's a interesting point of view/question. With interest rates near 10% for loans these days - used car loans at 9.06% for someone with excellent credit - are we at a point where it makes more sense ...
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Buying a duplex with another party, and 1 moves out: Does that party pay more?
I bought a duplex with another person. Two houses on the lot, and we both are living in the property.
One decided to move out & rent their part. Would they still be obligated to pay their half, ...
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Varying interest charges on car loan
I am making my $386 a month car loan payments each month on time. I just looked at the payment history and the amounts of principal and interest vary widely each month.
For example:
October: Balance ...
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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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Does a company have to have your login information to verify your identity?
A loan company said they needed my logins to my account and got a couple closed and also logged into my id.me and got it locked. Do they need my username and password? He said that he needed another ...
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Why aren’t amortized loans outlawed and replaced with a more equitable model to the borrower?
I completely understand that banks are in the business of making money and capitalism prioritizes profit above all other values. However why aren’t laws enacted that would ban amortized loans and ...
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Credit Investing - Best Metric To Compare Spread / Yield Per Unit of Risk
Do people investing in credit (leveraged loans / high yield) that want to compare different industries / different valued businesses ever look at spread per turn of LTV (or the inverse, 1/LTV = asset ...
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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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How to compare loan interest rate to savings account interest rate?
I don't understand how to compare my loan's interest rate to my savings account interest rate.
My savings account states:
The Interest Rate on your account is 4.0249% with an Annual Percentage Yield ...
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Minimizing tax liability in business purchase w/ personal loan from other partner
I'm purchasing an existing business with a business partner. They're in a better position than I am regarding liquid assets. I've got most of my assets in positions where I'd be paying high short term ...
user12007
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Determine loan interest rate from income statements and balance sheets
I'm trying to determine the loan interest rate from financial statements, e.g https://finance.yahoo.com/quote/VLVLY/balance-sheet?p=VLVLY
Here's what I got
Interesting expense 1,205,000 = 12.05B
...
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Consequences of frequent share holder loan and repayment to and from my Ontario Corporation?
Let's say I have an Ontario Corporation in Canada. My corporate fiscal year is from July 1 to June 30. I also have a personal line of credit with my personal bank and I owe $50k to the bank. The ...
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Creating an amortization schedule for a loan with variable interest that compounds 2x per year
Has anyone created an amortization schedule for a loan with a variable interest rate that also compounds 2x per year?
The loan has a set payment amount (15k monthly), but because the interest is ...
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3k
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My girlfriend helped me buy a car - Who is responsible if she takes it back?
My original car was totaled, and I couldn't get a car on my own due to bad credit. The dealership approved me at a high rate with money down. When I get my trust fund, I can buy one.
My girlfriend ...
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How does a rollover work with Bonds?
I understand how a rollover works with personal loans. An easy example would be a car. Someone wants to buy a new car, but they still have an outstanding balance on their current vehicle. So the ...
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Can applying for a new loan affect my existing mortgage? (US)
I live in the US and I am a somewhat mature full-time graduate student. I have gone back to grad school after having spent some years working and I have children and a mortgage. My school has a policy ...
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Do student loans capitalize daily after the grace period?
As I understand it, for many student loans, when you take out the loan, there is a daily, fixed, simple interest that accrues. This accrues on the principal but does not capitalize. Therefore, if I am ...
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Does a loan for purchasing land provide a tax benefit?
I want to take a loan for land. In the future we want to build house on it, but now we can only afford the land. Would this be a personal loan or home loan?
If I take this land loan can I benefit in ...
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How do loan payments made before the end of the month affect payment due for that month?
I would to understand how loan repayments work. Let's say I take out a loan for $100,000 at 5% for 5 years. I would have a monthly payment of $2,124.70. This payment is expected to be paid monthly. ...
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