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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0
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3answers
143 views

If I owe £100k as a directors loan, do I have to pay back £100k

If I have a directors loan of £100k taken out in the UK and I am now look to pay this back. Would I be looking to pay the full £100k or is it calculated differently? I am slightly confused here, when ...
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1answer
65 views

Withdraw a covered call premium right away

Let's say that I have $50k in my brokerage account. My broker will let me buy double my account's value on margin. I can buy 100 shares of TSLA at $820 per share and then sell a one year covered call ...
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1answer
55 views

Can a bank continue to allocate payments to interest even after they have taken what the contract states?

I purchased a car, borrowing money from a bank for the auto loan. Long story short, I asked the bank for a detailed history of my payments, and they sent me a document that shows every payment I've ...
2
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1answer
39 views

Paying taxes on a converted old retirement account to a Roth IRA from a 401K loan from current employer?

I have an old 403B plan, I am 47 years old and would like to convert part of it to a Roth. I would like to convert $100k to the Roth, but will then have to pay taxes on the conversion. Lets just say ...
34
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7answers
3k views

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 ...
18
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6answers
6k views

Does paying down the principal change monthly payments?

I have a 16,000.00 loan at 6.49%. If I pay 6,000.00 on the principal, will it lower my payment? Will it reduce interest each month and reflect on my payment?
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9answers
9k views

Is my back-of-the-envelope calculation about taking out a loan to invest into the markets flawed?

With the recent economic struggles due to the Covid-19 pandemic the stock market seems to be even more interesting for personal investments. Taking out a loan might be one of the ways to gather or ...
0
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4answers
114 views

Will rising interest rates boost financial stocks?

Would rising interest rates (as set by fiscal and monetary policy) increase the profitability of companies that lend out money, and thus increase their equity value?
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0answers
16 views

Question for Xenith (Eikon) Expert - Is the following data available…?

In the ''Universe'' tab are many different options: Government and Corporate Bonds, Equities, Funds, Indices, Equity & Index Derivatives, Companies/Issuers, Commodities, FX & Money, Benchmarks ...
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0answers
20 views

Choosing between a deep discount bond and a loan with variable interest rate

I was wondering what kind of a method should be used to choose between a deep discount bond and a loan with variable interest. Since one option has a fixed rate, and the other has a variable interest ...
4
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0answers
31 views

Tracking Loan Made to someone in Mint

I loaned my son money for his car and he is now paying this back with monthly payments. Is there a way to track that within Mint? Tried setting up different account types, but none of them seem ...
4
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5answers
2k views

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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4answers
179 views

Why can't you get a loan against your IRA?

I'm trying to borrow against my IRA but for personal reasons rather than one of the 8-9 approved reasons. Does anyone know why it's prohibited? Is there any way around this?
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2answers
148 views

How can I protect against my proxy incurring fines or charges on my library card?

My small town USA university provides me free interlibrary loans. They confirmed that I can authorize anyone as a proxy like these quotes. For confidentiality, I don't want to name my university or ...
5
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3answers
203 views

Was 50k loan limit always a part of the 401k program and are there any ways around it?

I got a loan from my 401k that I repaid a while back and I don't remember anything about a $50k limit. Now I am buying a new house before I sell mine and the $50k limit seems to be ridiculous since ...
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2answers
70 views

Can I benefit from a liquidation event if I use the funds to pay off my spouse's student loans?

I am expecting some liquidity on my NSO (Non-qualified Stock Options) and ISO ( Incentive Stock Options) with current company. I have heard of 529 for college fund. Is this something I could use to ...
0
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1answer
64 views

Should I consolidate my loans amidst political talks of forgiving student debt? [closed]

I recently graduated college in the US, and my loans went into COVID-19 forbearance. I'm not required to make payments until January 2021, but I have been witling away at them for a few months since ...
0
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1answer
58 views

Why would I care about “potential for downward pressure on the price of loaned securities due to short selling” when loaning securities?

I read in an email from Fidelity regarding their "Fidelity’s Fully Paid Lending Program": Keep in mind that while your securities are on loan, there is the potential for downward pressure ...
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1answer
1k views

What tools are there to investigate why my FICO score would have dropped significantly?

Please assume the basics have been considered, such as: Credit utilization could have went up Hard inquiries Closed an account Opened a new credit card Paying off a loan None of the above occurred ...
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2answers
173 views

Which should I pay first, Car Loan vs Zero-Interest Credit Card Promo?

I have a new car loan for $12k at 7.74%, and about $10k in old credit card debt that I just transferred to a card with a ~20% APR after the initial 13 month zero-interest promo. (So, I am not being ...
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2answers
60 views

Is it possible to create a LLC for property investment and obtain an FHA loan?

I'm interested in forming a company to invest in property for tax reasons. I currently don't have a mortgage and never have, is it possible to obtain an FHA loan for a piece of property and have the ...
2
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1answer
90 views

Should I increase the 401K loan payments or increase my 401K contributions

I have paid off all my debts except my mortgage and I have a 401K loan. I have a 15 year mortgage at 3% interest. I was thinking of increasing my 401K loan payments or increase my 401k contributions. ...
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3answers
276 views

Are there any advantages to PCP car deals beyond a low monthly payment - even though you don't own the car?

Up to now I've bought every car I've owned outright. Due to changes in my family situation I need a bigger car. I'm looking at a used (albeit low mileage) car which is priced at £11,300. I could sell ...
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2answers
128 views

Can I use my investment savings as a source of income to be considered for a loan?

I'm currently receiving public benefits from the Social Security Administration and my state's Supplemental Nutrition Assistance Programme (SNAP). I've been on these programmes for many years. I've ...
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2answers
380 views

How do locals in Germany finance their lifestyle seemingly above their salary levels? [closed]

I am foreigner in Germany, and I have noticed that my neighbours seemed to have no problems financing very expensive lifestyle, which I doubt can be afforded by salary alone. My question is: Is there ...
1
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1answer
49 views

How do I calculate monthly payments given a certain loan amount, APR, and loan term in years?

I have a homework assignment to create a calculator that calculates a monthly payment, given a certain loan amount, APR, and loan term (in years). What is the formula I need to use?
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1answer
41 views

Loan from NRI Brother

If I borrow money (10 Cr approx without Interest) from my brother who is working in abroad is it taxable to IT of India for my brother ? does that amount count as my income, and should I have to pay ...
0
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2answers
103 views

Should a mortgage refinance bank be granted access to full tax returns of the last two years?

I'm shopping around to refinance my mortgage (in the USA) and one bank asked for the following information: 2018 & 2019 Tax Returns (All Pages) 2018 & 2019 W2 Most Recent Last 2 Paystubs If ...
1
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1answer
71 views

Loan Amortization with first payment period less than others

I'm trying to make loan amortization schedule where Interest rate is calculated on the exact period dates. (installment dates taking into account weekends and public holidays) and with the first ...
1
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2answers
125 views

EU APR calculation, solving for APR

I'm looking for some help with a finance homework. We've been given the FCA calculation for APR: Source: https://www.handbook.fca.org.uk/publication/handbook/graphic/13449.png We've also been given a ...
3
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2answers
157 views

Should I prioritize repaying my 401(k) loan over maxing out my 401k contributions?

I took out a $22,000 loan (over 7 years) against my 401(k) for the purchase of a new home. I currently owe $15,000 on that loan. While I make 401(k) contributions each paycheck, I am not making the ...
1
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1answer
71 views

Formula for calculating the monthly payment for a Personal Contract Purchase

How can I calculate the monthly payment for a PCP (Personal Contract Purchase) when given the variables below? 'Amount to be financed' - finance amount APR (annual percentage rate - %) Length of ...
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1answer
41 views

Indian Income Tax System Rebate on Education Loan and House Rent

I am a recent graduate and will be starting my job in a couple of days. My offer Letter says CTC Offered: ● X LPA (can't disclose the actual amount) -> fixed and it is written that: Applicable ...
0
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1answer
130 views

5-year tenor and 10-year repayment profile meaning

Say I have a loan of 3,000,000 with a 5-year tenor and a repayment profile of 10 years such that 300,000 will be paid back each year. Does a 5-year tenor mean that I will start paying 300k yearly ...
4
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1answer
159 views

Can banks charge a lower interest rate for loans than for their fixed term savings account and still make profit?

A friend of mine got a loan of 1,000,000 at an interest rate of 10.6% per year for three years and then deposited that 1 million at 3-year fixed-term non-accessible savings account with a return ...
1
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1answer
188 views

I thought I was a boat owner with a loan, only to find out I was used as a cosigner. What are my rights? [closed]

I thought I purchased a boat. I signed the paperwork as a borrower, only to find out I was used as a cosigner. He filed for divorce and took off with the boat. He is always 2 payments behind. What are ...
1
vote
1answer
51 views

Better loan option: PMI or Higher+variable interest?

I'm looking at two options for a home improvement loan (around $20,000): the first is a federal title 1 loan, which would be a fixed interest rate of around 4.5% (at the time of initial quote), BUT ...
11
votes
6answers
3k views

Negative p.a. rate for a 12-month loan

I ran across this offer (German) which basically promises me 1000 euros for free (or rather, they give me an additional 4 euros), and as far as the given offer shows, there are no further costs or ...
5
votes
3answers
291 views

When computing monthly interest, why do we divide yearly interest by 12, rather than taking the 12th-root?

I've been reading about loans and interest rates, and I've run across a mathematical sticking point. The crux is that, if my loan's outstanding balance is £100,000, I make no payments, and it has an ...
0
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2answers
83 views

Mathematical method to minimize weighted interest rate on a set of student loans for a given payment? [duplicate]

See image attached. I graduated back in May. Even though my loans are in forbearance right now due to COVID and I'm still in my grace period for payments, I wanted to get a head start on figuring out ...
0
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0answers
24 views

Interest and principal line-item amounts for seasonal mortgage

I'm working with this question: Seasonal Loan Amortization. I wondered if someone could elaborate how to calculate the principal and interest portions of the payments when they are paid. The article ...
0
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1answer
38 views

Interest Benefit on Home Loan for pre-construction period, if foreclosed before 3 years after posession

I am living in India. I want to know if I can claim tax benefit for the interest paid on my home loan under Section 24 for the pre construction period if I foreclose the loan before 3 years of ...
3
votes
1answer
79 views

With student loan interest suspended, which loan should I be paying off?

Say I have two loans, A and B. Loan A: Normal low-interest loan with interest Iₐ Loan B: Student loan with higher interest Iᵦ. However, because of Coronavirus, interest is suspended for the next T ...
0
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1answer
76 views

If an asset you bought with borrowed money loses all value, will it be repossessed by the bank?

Suppose you buy a business by borrowing money. However, the business operations cause the business to lose money. Will the bank repossess the business, even if you're paying your loans on time.
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4answers
385 views

Stuck in a debt of 3 credit cards

I have 3 credit card and I have utilized the funds of these cards 100%. Now I need to pay back the amount to bank. I am from Pakistan and the currency is PKR. Here is the stats: Card 1 - 4.5K (cash ...
22
votes
12answers
7k views

Pay off Loan With Savings or Keep Emergency Fund

A year and a half ago I took out a Career Development Loan(£7000, 9.9% interest). Which is currently around £4900 now. I have been saving for no particular reason, and I now have over £5000 in savings ...
0
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3answers
115 views

The most efficient way to pay off loans/credit? [duplicate]

Supposed you have a fixed amount of money to commit every month to debt repayment... well above all minimum payment requirements. All other quirks and conditions being equal. The only differences ...
0
votes
1answer
94 views

IRR calculation with Initial Investment disbursed on two years

In my case, I think: Numbers say more than words. So, I've simplified the financial situation in this image: Here is the Excel file. How to calculate the Internal Rate of Return (IRR) with such a ...
-2
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1answer
72 views

Refinancing Home Loan [duplicate]

You have been living in the house you bought 7 years ago for $300,000. At that time, you took out a loan for 80% of the house at a fixed rate 15-year loan at an annual stated rate of 8.0%. You have ...
3
votes
1answer
83 views

Calculating interest and Principal Paid using TI-84

How do I calculate the net quantity of interest on a loan, and the net quantity of the principal on the loan, that I have paid off after a given number of payment periods in the finance app on a TI-84 ...

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