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
votes
2answers
1k views

Go for Fixed or Floating interest in Mortgage

Which type of loan is best, a Fixed interest rate or a floating interest rate? In India most banks offer mortgages that start with a 12% floating rate or a fixed rate mortgage with a 13.5% interest ...
2
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2answers
2k views

PCP or Bank Loan for Car Purchase?

I'm trying to figure out the best way to pay for a car we're about to purchase. I had a figure in mind of between £6-7k when looking at cars, so I also knew I wanted to pay around £200-£240 per month ...
0
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1answer
289 views

What's the Effective Interest formula used by this loan calculator?

I used a loan calculator which gives an effective rate of 80.781 whereas wikipedia http://en.wikipedia.org/wiki/Annual_percentage_rate gives a rate of 49% for these parameters: borrowed: 100 fees: ...
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2answers
239 views

Refinancing a vehicle, longer term with extra in the kitty, or shorter term and just make scheduled payment?

My truck is currently financed with $31k owing @ 9.9% interest over 72 months = $565/month I've been approved to refinance my vehicle with the following $31k owing, down payment of $3.5k & 5.9% ...
5
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2answers
6k views

What are the tax implications of lending to my own LLC?

Well, as I mentioned before, I'm buying rental property under the name of my LLC (California). I used cash for the purchases, but the initial investment I made in the company was not enough to cover ...
9
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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 ...
0
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2answers
179 views

Is there any kind of unsecured stock loan?

I am interested to buy some shares in the future. Can anybody tell me is there any kind of stock loan which doesn't need collateral?
1
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1answer
366 views

What does “parity” mean with regards to student loans?

I read in a newspaper that interest on part-time student loans was made the same as a full time student's loan in order to "achieve parity between part-time and full-time student loan programs" ...
22
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9answers
3k views

What is the difference between “good debt” vs. “bad debt”?

This other question about home renovations makes reference to the concept of "good debt." Could somebody explain the concepts of good debt vs. bad debt, providing examples of each? Are there cases ...
1
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2answers
878 views

How to structure a loan for my owner-financed business sale, so we are paid sooner than later?

My wife and I are in the process of selling our business to a buyer. We have agreed on an amount to sell the business for, and to owner-finance the balance. The buyer has already taken over day-to-...
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2answers
2k views

How do you hedge against student loans?

How do you hedge against student loans? I know people were able to hedge against the housing loans that busted so how do you do the same with student loans?
0
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1answer
88 views

Home loan application factors for self-employed

What factors are considered in applying for a home loan where the primary income of our household is from self-employment? Details: Salaried, W-2 employee of an S-Corp (50% owned) Corporation is ...
9
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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 ...
4
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4answers
9k views

Should I pay off my car loan within first year or wait until at least one year has passed?

I have the capability of paying off my car loan of around $15,000 by end of June next year, however this loan started this month. I have heard loans/accounts kept open for more than a year are on ...
9
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3answers
684 views

Am I “cheating the system” by opening up a tiny account with a credit union and then immediately applying for a huge loan?

I've always wondered why credit unions require you to open a membership account before they'll approve a loan. Whenever I think about it, it feels like going to a credit union just for a loan is ...
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?
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 £...
3
votes
3answers
120 views

Where do I get the best interest rates on a loan?

What do you think about Peerform, Lending Club, and Prosper in relation to these other Banks, credit unions, etc.? I am looking for a debt consolidation loan and I have a decent FICO ~700.
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 ...
3
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3answers
243 views

Will I incur late fees, now that I am making infrequent/late payments on my auto loan?

I have been unemployed for 6 months now. I have been making infrequent payments on my auto loan. I am suppose to be paid up in May of 2012. My lien holder never sends me my balances or a bill, so I ...
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 ...
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 ...
2
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3answers
4k views

Is it appropriate to borrow money for a vacation trip?

I've planned to have a vacation, but for some reasons didn't put much money for that and now I see that the only mean to have a trip is to borrow some money for it. Should I do that or this is ...
3
votes
1answer
498 views

loan taken on my friends name for someone else

My friend has taken out loan for his brother in law, and is a guaranteer for two other loans taken on his friend's name. Now he is not paying his EMI, and debt collectors are troubling us. Is there ...
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2answers
2k views

What is the most efficient way to pay a student loan in the US from the UK?

The loan is in the United States and can only be paid using direct debit from a US bank account which is already established. However, all earnings are in GBP in the UK. What is the most efficient way ...
10
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1answer
2k views

Are student loans tax deductible in US?

If I have a student loan from finishing my graduate degree, can I deduct its interest payments from salary for tax purposes? Is there any education related tax credit that can be applied for payments ...
2
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2answers
318 views

What is the best way for me to invest my money into my own startup?

I've started a company with a friend, and we're looking to find out how to transfer some of our money into the company. Several sources suggest that, since we're the only owners so far and there's no ...
2
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4answers
2k views

5/1 ARM: Lifetime cap, First Adjustment Cap, Margin, and Annual Cap?

I am looking over some paperwork for a 5/1 ARM. The loan information is as follows: Interest Rate: 2.75 Lifetime Cap: 5.00 First Adjustment Cap: 1.00 Annual Cap: 1.00 Margin: 1.75 I understand ...
2
votes
1answer
72 views

Lender benefits/perks comparison website or resource?

I was trying to research different lender housing loans in the US. I realize only the true rates and approved amounts would be after meeting with each lender and going through their pre-approval ...
2
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2answers
369 views

Is it worth it to re-finance my car loan?

I have 60-month car loan at 4.75%. My bank sent me a note saying that I am able to re-finance at 3.25%, to either 60 or 48 months. I am calculating that it will probably save me about 400-500 ...
4
votes
1answer
146 views

Federal Stafford Loan deferment options?

I have a question pertaining to Federal Stafford Loans, I think it goes here, let me know otherwise. I have several student loans, Federal Stafford Loans to be exact, and the National Guard has ...
0
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2answers
427 views

mortgage math problem

There's a 30yr home loan for $100,000 at 7%. After 15 years the loan is paid off in order to refinance at a lower rate. The loan has a prepayment penalty of six months interest of 80% of the ...
5
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3answers
4k views

Will paying off a loan early hurt my credit?

I recently purchased a vehicle and took out an Auto loan from the local credit union. I have run into some extra cash and can actually pay off the car completely. I have a very little credit history,...
2
votes
2answers
3k views

How does “taking over payments” work?

I will be purchasing a new car fairly soon here, and could help my SO out a lot by having her "take over" payments on my current car. I've heard this term colloquially, but I'm not sure how it works ...
2
votes
1answer
142 views

Lending Club is not available to my area. Is it possible to invest via somebody else?

I live in DC and can't invest using Lending Club. My brother lives in CA and does. Is there any way to 'gift' him money or any other way to have him invest money for me? I want it to all be legal but ...
5
votes
3answers
6k views

Is installment the same thing as amortization?

Trying to make sense of the difference between installment and amortization. They seem to be used interchangeably in some places but to me it seems like amortization should be amount that you pay off ...
3
votes
3answers
302 views

What actions can I take against a bank for lack of customer service?

I currently have a mortgage with a bank. Two months ago, they had an offer to fix our home loan interest rate for a year. We accepted this offer, we signed a document and they signed it too. In ...
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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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 ...
12
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7answers
751 views

Are Kiva or other microlending institutions a decent way to improve overall yield?

Have you used Kiva.org, Microplace.com or any other microlending institutions? Any positive or negative experiences? Does this seem like a decent way to improve overall yield, assuming I'm willing ...
10
votes
2answers
904 views

How do I get into the over-the-counter derivatives gravy train

Some philosopher, or banker once said: "If you can't fight them, join them". After reading Matt Taibbi's last two pieces on Rolling Stone on how banks have obtained certain rights to sell hot air ...
4
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1answer
74 views

Settlement Loan

I was in a car accident 4 years ago. I had gone to a settlement lender for a small amount after my income benefits were cut off. I guess I missunderstood how the interest was calculated and found ...
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?
10
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1answer
12k views

If I co-sign a loan, does it affect my own ability to borrow due to the debt-to-income ratio?

If I co-sign a loan (e.g. for a friend or family member), does it affect my own ability to borrow money due to the debt-to-income ratio?
6
votes
1answer
2k views

What happens if I co-sign a loan and the borrower or debtor dies?

What happens if I co-sign a loan and the borrower or debtor (the person that borrowed the money) dies? Does the co-signer then assume full liability over the loan, i.e. become the new and sole debtor?...
1
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1answer
96 views

Rules for FHA loan availability

I'm trying to find the laws on what makes a condo complex available for FHA loans. I hear it has something to do with the amount of money on reserve and the owner/occupancy ratio. Does anyone know ...
7
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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 $...
10
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1answer
723 views

If I co-sign on a loan for someone, am I putting up money (is there a cost)?

Does it cost me anything if I co-sign a loan for someone?
4
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2answers
66 views

I've heard that it's never a good idea to go with payment protection plans offered by credit card companies. Is this true?

I'd like to think my bank isn't trying to swindle me when they call and try to sell me one.
30
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3answers
3k views

What are the pitfalls of loaning money to friends or family? Is there a right way to do it?

What are the pitfalls of loaning money to friends or family? Is there a right way to do it?