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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9
votes
5answers
2k views

Home Renovations are expensive.. Should I only pay cash for them?

Should I save up enough cash to do home renovations, or can I take out a loan? Our house needs a new kitchen floor as the linoleum is actually ripped in some areas, and the wood is exposed... This is ...
9
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3answers
2k views

Overpaying on mortgage - How is term reduction calculated?

Just for some example figures: Original Term: 25 Years Loan Amount: £100,000 Interest rate: 2% I'm trying to make an excel table which keeps track of my mortgage payments including overpayments. ...
9
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4answers
2k views

Is paying your bills and loans one day before it's due a good practice?

I am a full time working professional. I have the habit of paying my bills and loans a day before it's due. That way I've got more cash on hand. However, I've also read that it is better to pay off ...
9
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5answers
1k views

Is there any reason to NOT pay the minimum on all but one of our loans?

My wife and I have multiple loans to pay off: car loans, student loans, and a mortgage. Currently we pay the minimum on all but one of the loans, and put any extra we'd like to pay into the highest-...
9
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5answers
9k views

New car price was negotiated as a “cash deal”. Will the price change if I finance instead?

I am planning to buy a new car. I went to a dealership and when talking to a sales person I said I can pay cash. He knocked down the price quite a bit. Since the dealership did not have any low APR ...
9
votes
2answers
3k views

Why would you take a loan secured by your savings account?

I see at least a few credit unions offering these savings-secured loans. I can kinda see the advantage to taking a loan against a CD with penalties for breaking, but share and savings accounts have me ...
9
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2answers
286 views

Co-signer deceased

2 years ago an elderly woman that I helped take care of and I worked for her co-signed for me and my fiance to get a 4 wheeler. We have never missed a payment and Honda will say that we have perfect ...
9
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2answers
31k views

Construction loan for new house replacing existing mortgaged house?

Let's say I buy a home with an ordinary thirty-year mortgage, intending to renovate the house slowly and live there a long time (ten years at least). Five years into the mortgage, however, I decide I ...
9
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3answers
560 views

Help: Being charged interest on a loan for which I received no statements telling me of this debt for the past 15 years. Surprise!

Is this legal? This was a private loan within a small business. I was under the assumption that the bill was paid in full 15 years ago. My only drawback is that I never got them to sign to verify the ...
9
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1answer
133 views

What are the implications of lending money to my sole member S-corp?

My S-corp (sole member) is short on cash but needs to pay a large bill. Fresh cash is expected in the next months. Can I simply transfer money from my personal account to the business account of my S-...
8
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8answers
4k views

Would I qualify for a USDA loan?

I am eager to buy a home within the next year. My husband and I are in the process of fixing credit. I am interested in learning more about the USDA loans and think that this would be the best type of ...
8
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5answers
4k views

Paying off a loan with a loan to get a better interest rate

I've never had credit or a loan till recently when I bought a new car. This has recently given me a much better credit rating after having the loan for a year with 5 years to go and 2 credit cards ...
8
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7answers
839 views

In a very tough credit/financial situation

So here is my situation. I have a car that is very dangerous to drive at this point. Like I am seriously worried that either I or the car won't make it through the upcoming winter months. Now, I would ...
8
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3answers
499 views

Are founders typically completely on-hook for business loans, when a business fails?

Let's say an individual takes out a business loan, incorporates (or whatever), hires a team and works awhile. Eventually the venture fails. Is this individual completely on-hook for the millions he ...
8
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4answers
2k views

Co-signing a loan and having them leave the state with no contact information

I helped my now ex get into school by co-signing a loan. I have made great attempt on contacting her through friends and family. She has left the state and won't talk to me about our responsibilities. ...
8
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2answers
47k views

I plan on receiving a $200,000 personal loan via wire transfer. Do I have to report this to the IRS?

After researching online, I found many websites that said wire transfers are not reported to the IRS, but others said that they were reported. I just want to make sure that I do not have to pay taxes ...
8
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2answers
614 views

Large loan at zero interest or very little interest?

I have a big problem but a lucky solution. I have a huge amount of debt, student loans that add up to hundreds of thousands of US dollars. I have a relative who is willing to give me a loan to cover ...
8
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3answers
2k views

What type of credit or loan to get for job relocation?

I have never had a credit card. The only loans I've had have been student and car loans. Both of those I always paid on time; both are paid off. I have accepted a job offer and am now looking to ...
8
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2answers
2k views

Is the child responsible for the Parent PLUS Loan when the parent has passed away?

Is the child responsible for the Direct Parent PLUS Loan when the loan is under the parent that has passed away? Specifically by the U.S. DEPARTMENT OF EDUCATION.
8
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5answers
739 views

Is it worth paying off my loan early with only 4 payments left?

I only have 4 payments left on my loan and have recently sold an asset so now have enough cash to pay the remaining balance. Is there any benefit to paying off the loan fully or as I've only got a ...
8
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2answers
44k views

Lending money to someone: how to book?

I'm trying my hand at double-entry bookkeeping for my personal finances. While I get the gist, I have trouble with the details. Please bear with me if I use the wrong terminology. I have lent some ...
8
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2answers
5k views

Is there a most efficient way to pay off multiple loans with the same interest rate?

My Situation: About $36k USD in graduate student loans. There are 4 different federal loans in play, each with a fixed rate of 6.8%. $12k w/ ~$1.2k in unpaid interest $10k w/ ~$1k in unpaid ...
8
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4answers
335 views

Is there any circumstance in which it is necessary to mark extra payments on a loan as going to “principal and not interest”?

I've heard for years - and not believed - that it was necessary to mark extra payments, clearly targeted towards a particular loan, as "apply to principal" or any other such magic wording in order to ...
8
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2answers
431 views

How should I inject working capital into my company?

Me and two partners started a company earlier this year. Each of us owns 33.33% of the shares. Right now we are generating enough income to cover our monthly expenses, but we have already signed new ...
8
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2answers
822 views

Paying off loans early, or is there some way to reduce extortionate interest charges?

I bought a car about 2 years ago on finance. The car was priced at £11k and I was very quick to jump at the chance rather than thinking. Over the 5 year period I'm paying over £18k in total, thats £...
8
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2answers
2k views

What is the formula for calculating the total cost of a loan with extra payments towards the principal?

If I have a 30 year mortgage of $200,000 with an APR of 4.446% I can calculate how much my monthly payment will be and how much the total cost of the loan will be. But what if I have an extra $200 to ...
8
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4answers
681 views

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 ...
7
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5answers
4k views

Can I use my paid-for home as collateral for a consolidation loan to pay off outstanding bills?

I'm needing to find out if I can use my home and its feed as collateral for a 3000-5000 dollar loan to pay off my outstanding bills and just have one payment.
7
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5answers
3k views

College student - I'm a 'dependent' and my parents won't apply for the Parent PLUS loan or cosign a private loan

This is currently happening to a friend. She is 19 years old and doesn't qualify as an 'independent' on the FAFSA. Her parents refuse to apply for the Parent PLUS loan and also refuse to cosign for a ...
7
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2answers
22k views

I am under 18 years old, in the US, my parents have terrible credit, how can I take out a loan?

I am under 18, currently shopping for a car. Like many people, I don't have enough money sitting in my bank account to purchase a good car, around $6,000 to $10,000. However, credit checks have ...
7
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2answers
4k views

Should I pay off my 401k loan or reinvest the funds elsewhere?

I have a loan out on my employer 401k plan for $50k, which I took out for the purchase of a home (so there was no penalties, or taxes withheld). The interest rate is 4%, which I'm paying into the ...
7
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6answers
20k views

Should I get credit life or credit disability insurance with my auto loan?

Is it worth the extra $10 or so that would be added to a car loan in order to get credit life insurance and credit disability insurance? For a relatively young person looking to get the most out of ...
7
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4answers
502 views

Would it be better to borrow money from an elderly relative than from a bank?

Would it be better to borrow money from an elderly relative than from a bank?
7
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3answers
11k views

Questrade - What happens if I buy U.S. stock with Canadian money?

Recently, I heard that when you buy U.S. stocks with Canadian money in a Questrade account, they actually make a loan of the U.S. dollar amount you bought even if you have enough money to do the ...
7
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1answer
302 views

Consequences of student debt in the UK after moving to the US

My British wife went to university in the UK from 2001 to 2005. She got a student loan with SLC and was never charged anything because her income was too low. She left the UK in 2011, never earning a ...
7
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1answer
9k views

Home loan transferred to Freddie Mac — What does this mean?

I got a letter saying that my mortgage loan was "sold to Freddie Mac or to Freddie Mac as a trustee." Other interesting wording is that "the transfer of ownership... has not been publicly recorded." ...
7
votes
2answers
2k views

Are there any catches to a bank's offer of 0% convenience checks?

My bank has sent me these 0% APR checks for years and I recently find myself in a situation where it would be useful. I have a lot of wedding expenses which will not be a problem in the long term (6 ...
7
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3answers
33k views

How to deal with my job change & 401k loan that I can't fully pay back?

It's been 60 days since I changed my job and I have an outstanding 401(k) loan of $30K(+30k non loan amount). I have only $20K to pay and my 401k plan won't accept the partial amount. I still didn't ...
7
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5answers
239 views

What is the preferred way to finance home improvements when preparing to sell your house?

Planning on moving and getting our house ready to sell has been more expensive than I expected. I'd like to get this debt off of credit cards. What's the most cost effective way to do this?
7
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3answers
153 views

Under what circumstances might getting an ARM be warranted?

Specifically, I'm curious about the 7/1 and the 10/1 ARMs. I'm half-way seriously considering refinancing into one of these, mostly because I doubt I'll still be in this house in 7-10 years. I'm ...
7
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4answers
7k views

How do amortization schedules work and when are they used?

Specifically, I notice that on a mortgage statement, my payment is "amortized" so that at the beginning of the loan, I am paying almost entirely interest and very little principal. However, on a ...
7
votes
1answer
379 views

What happens when you make extra payments but don't specify principal reduction?

Lets say your loan payment is $100 a month. What is the differences between: making a regular payment for $120 making a regular payment for $100 plus an additional principal reduction payment for $...
7
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2answers
342 views

Options for giving an amount greater than the annual gift tax exclusion

Gifting up to $13,000/year (as of 2009) to someone is not subject to gift tax. http://en.wikipedia.org/wiki/Gift_tax_in_the_United_States Assuming that the individual receiving the money is older ...
7
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1answer
1k views

I have a 401k loan used for a house down payment and now I am changing jobs: What should I do?

I guess this could be a cautionary tale, but I am hoping it can be remedied. I had a job that I am leaving, but I had took a 401k loan to put down on a house. I don't have the money to pay it back ...
7
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1answer
104 views

For the purposes of building credit, does dividing up a loan help?

I want to enhance my credit with share secured loans (I'm a member of a credit union). All else being equal, will paying off 5 $200 loans give my credit score more of a boost than one $1000 loan?
7
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1answer
1k views

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 ...
6
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5answers
1k views

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 ...
6
votes
2answers
841 views

Bank loan responsibility for corporation partners

I own 25% of a small corporation. My partner (who owns the other 75%) and I took a loan with a bank (TD). We both had to give personal guarantees. Am I only responsible for 25% of the loan? If we go ...
6
votes
2answers
2k views

Is there any loan forgiveness or help for a large Federal parent student loan?

If a parent has a federal student loan for her child's education of over 100 thousand dollars, and she is having trouble paying off, is there any sort of forgiveness, or help?
6
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2answers
849 views

How do scammers / money launderers profit from loans to victims?

Recently, I had an investor [scammer] offer to loan my company money. It was to be posted directly into my accounts — equal amounts in my checking and savings accounts. There were no conditions that ...