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
1answer
254 views

Paying off student loans in anticipation of home purchase

I graduated college in May and have been working full time since. I have $19,000 in student loan debt, all subsidized/no interest yet, that goes into repayment soon. I am also getting married next ...
5
votes
1answer
457 views

What are some motivating ways to track performance of paying back a loan?

I have a mortgage right now and I am motivated to pay it off as fast as possible. I have thought of a few key performance indicators that I store in a spreadsheet and check on each month. These ...
16
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7answers
7k views

Using 0% APR credit card(s) to pay off loans to avoid interest

Not sure if this is possible but it did come to mind out of curiosity sake. Assuming you have a $10000 loan for example. You open up a 0% APR card for 15 months with a credit value of $15000 for ...
11
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5answers
802 views

How does the lender benefit from offering a Reverse Mortgage?

It is always a good idea before entering into any financial arrangement to understand what benefit the person on the other side of the deal is getting to fully understand whether the deal is equitable ...
7
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1answer
6k views

Why am I getting “Pre-approved” loans from random financial institutions in the mail?

Lately I've been getting letters in the mail saying that I've been pre-approved for a $2000 dollar loan by some random bank or financial institutions. I've never given out my address to anyone. I ...
31
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9answers
11k views

Is it a good idea, to buy a flat with a loan, whilst using the rent to pay it off? [closed]

I have been thinking about taking a loan to buy a flat which I would rent out. My reasoning is that the loan would be paid off over time by the renters. After perhaps 30 years, I'd be left with a ...
2
votes
2answers
263 views

How long do I have to pay back a 401(k) loan?

I have a loan taken out on my 401k through Fidelity. The loan originated on this date: 12/19/2017. I will be leaving my current workplace and moving to a new workplace that uses John Hancock 401k. ...
0
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3answers
168 views

Process of 401k loan removal

I understand that me taking a 401k was not a good idea so please as much as I know people want to tell me that I already know. I made a mistake...and did take a 401k loan out of my current employer. ...
4
votes
1answer
5k views

Should I request a car loan before or after changing jobs?

I have a decent credit score (low to mid 700's) and I'm pretty sure I could get approved for a loan. I'll be taking a new job in a new state in a couple of weeks and I would like to get my wife a new(...
4
votes
4answers
1k views

How should I calculate the opportunity cost of using a 401(k) loan?

I've seen a number of financial articles that discuss the "opportunity cost" of using a 401(k) loan; however, I don't seem to recall ever seeing a good formula or calculation that can be done to ...
26
votes
7answers
8k views

Why do people use mortgages, when they could just pay for the house in full?

I would like your recommendation on whether you should buy a house with a mortgage, which you would pay as you go, or should you buy it in full.
4
votes
1answer
910 views

What steps or checks should I do to see if a lending company that cold-called me is legit? Too risky?

A few days ago I got a call from company asking me if I have any outstanding debts and saying they can help me with my debts. Well, I don't have any debts; though I use 3 credit cards, I always pay ...
1
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3answers
373 views

What is a tranche?

I am studying Collateralized Mortgage Obligations (CMOs) - My understanding is that the product consists of mortgages which have real estate as collateral. The mortgages are bundled in batches which ...
0
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3answers
151 views

collateralized mortgage obligations

I was reading a comparative description in between CDO's and CMO's on Investopedia.com and I cant seem to understand the following statement: When the mortgages underlying a CMO are of poor credit ...
91
votes
15answers
33k views

Spouse wants to pay all debt in a month but I don’t. Is this a good idea?

Between both of our student loans and car loan, we are in the hole about $48,000. My spouse is adamant about paying off all debt in the next month or two since we currently have about $55,000 in the ...
6
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2answers
842 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 ...
-1
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3answers
247 views

Does this derivative contract between friends make sense?

Suppose there is someone with an investment horizon of 10 years (Retired Bob), and another person with an investment horizon of 30 years (Hungry Joe). Retired Bob doesn't want to take risk, but Hungry ...
1
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1answer
3k views

Name first on car loan can you also be the cosigner [closed]

If a name is first on a car loan does that mean he is the primary and not a cosigner. OR can you be first on car loan and still be the cosigner
31
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11answers
10k views

Is it a good time to replace my used car?

We have a 2005 Chevy Impala with 105,000 miles that we purchased in 2011. We have made many repairs such as replacing the transmission, repairing the radiator, heating and AC system, thermostat, belt,...
0
votes
1answer
66 views

Leasing a car on a personal lease vs withdrawing LTD funds to buy it for cash?

Every book, radio show or podcast for people wanting to become/stay wealthy would advise against leasing a car. I agree a car itself is an expensive toy and lease even adds to this equation, but... ...
2
votes
1answer
1k views

Should I pay extra towards my mortgage or HELOC?

My first mortgage has a balance of $147k with 4.75% fixed interest rate. My home equity line of credit (HELOC) has a balance of $87k with prime minus 1.1%. I've been making about $50 extra payment ...
2
votes
1answer
247 views

How do I improve my ability to get loans to use as leverage for my business? [duplicate]

Relating to Europe, but an US-focused answer is also welcome. Plan: I have a small stain on my credit history due to a tax issue. I am otherwise financially sound. I am not big enough for a bank to ...
1
vote
1answer
172 views

Why isn't auto insurance included in DTI

The debt-to-income ratio includes monthly payments such as your mortgage, car payments, student loan repayments, and child support. However, it doesn't include payments such as auto insurance. I ...
10
votes
1answer
7k views

Why are my auto loan payments calculated differently than my mortgage payments?

Last year I got a home loan that follows the standard Rule of 78s amortization schedule. I can easily predict how much of my mortgage payment will go to interest and how much to principal. A few ...
0
votes
3answers
348 views

How to get out of short-term loans?

I have about 15 small loans ranging in between 4k-10k in local currency, with most being 4k or under. Besides this, I'm currently paying 56k in local currency for a house (I can't cancel/pause this ...
2
votes
1answer
12k views

Can you pay off lease early?

If I pay off lease amount early for a car, is there any impact on my credit? Let's say I'm paying $400/month for 36 months, which is 14,400 total. If I pay 14,400 within 6 months, are there any ...
1
vote
0answers
199 views

How does paying off a car lease early work? [duplicate]

I'm a little bit confused on paying my lease amount early. As far as I understand, I loaded the total amount of the car. Let's say the total amount of car is 50k and the total lease amount is 25k. ...
3
votes
2answers
128 views

Financing and Leasing, difference!

What is the difference between leasing and financing a truck? My friend needs to buy a truck to start a business, and he asked my suggestions regarding the lenders offering a loan. In my search, I ...
2
votes
0answers
412 views

Buying a new car - price dropped while awaiting delivery

People! I've been doing okay financially and recently ordered a new car (Middle of April). While the vehicle is expected to be delivered in the next 2 weeks, I noticed that the dealership website has ...
5
votes
2answers
210 views

Loan for mortgage from father to son

My brother got an amazing loan to buy his house from dad for $200,000 but he only pays $150 a month ($100 capital + $50 interest). My question is, is this legal? Doesn't the IRS see this as more of a ...
42
votes
12answers
14k views

Should I buy a house now before prices rise even more?

We rent an apartment in Frankfurt, Germany and we are contractually bound to it for another 1.5 years. We are 33 and 35 years old and there will be children soon. We make around 110k € annually (...
1
vote
2answers
58 views

How to Calculate Interest Only Payment - Formula

I am trying to make a calculation for a monthly and biweekly - INTEREST ONLY. My Values: Loan: 30,000 Annual Rate: 2.99% Term 2 Years, 4 Months Calculation: 2 Years 4 Months = 2.33 Years Monthly ...
1
vote
1answer
491 views

What happens if I demolish a mobile home with an outstanding loan?

I own a double wide manufactured home that is desperate need of repairs. Parts of the floor are falling through, the central air doesn't work, and I recently discovered black mold inside the walls. ...
57
votes
5answers
15k views

Borrowing money in one country to pay off debt in another

I'm currently living in Germany and can borrow a substantial amount of money at almost no interest, effective 3.4%. In my home country I have several mortgages, basically at the moment funding ...
0
votes
1answer
83 views

Borrow money to move abroad

I live in the UK, and I am planning to leave the country next year for another European country. I have lived in this country for more than 5 years, and I have an excellent credit score. I have also ...
0
votes
2answers
139 views

primary loan holder [duplicate]

My husband thought that he was co-signing for his son's car. It turns out that they made my husband the primary loan holder but the dealership only put his son's name on the title. His son is now ...
1
vote
1answer
49 views

How to calculate interest on Monthly Effective loans where duration greater than compounding

I have an amortization software and trying to manually calculate the interest accrued it calculated. The Key values are: Compounding: Monthly Nominal Annual Rate: 10% Day Count: 365 Principal: 500,...
2
votes
1answer
960 views

How can I get a home equity loan on a manufactured home?

I am looking for a loan on a 3-bedroom 2-bath, 1200' 1995 Fleetwood Manufactured home. I have qualified for a $10k loan for a new roof & other improvements but the interest rate is 42%. In ...
8
votes
3answers
508 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 ...
1
vote
1answer
226 views

How do you calculate a monthly loan payment when using Actual/365 or Act/Act day count convention?

It is pretty easy to figure out a monthly loan payment based on the standard formula, when using a 30/360 method, because the monthly interest rate is always the same since each month has 30 days. ...
1
vote
1answer
637 views

Co-signer and Primary

My co-signer ending up being the primary on my car loan. Now that makes me the co-signer. Both of our names are on the car loan. Do i have any rights to the car? can the primary take the car from me ...
1
vote
1answer
118 views

Is it a good idea to make a lump-sum payment to pay off a personal loan, even if I want to build credit history?

I have recently received some money that I could use to repay my personal loan, however I am not sure if doing that, is a better idea than continuing paying the loan normally, with instalments taken ...
3
votes
2answers
180 views

Car loan finance question

My mother asked for me to sign for her a car as a co-signer. I spoke to the dealership finance rep to confirm price and payment information. My mother was at the dealership I was not I was at home in ...
1
vote
1answer
6k views

Can there be two primary owners on a car title while only one takes out the loan?

I am 19 and getting ready to trade in my car and get another one. I need lower insurance on this car I am getting and my parents want to put me on their insurance. The insurance agent said that my ...
2
votes
2answers
303 views

Partially vs. Fully Amortized Loan

Isn't the article beneath wrong to interpret a Fully Amortized Loan as a loan with 7 years maturity? Isn't the correct comparator a Fully Amortized Loan with 30 years maturity, and 30 years ...
3
votes
3answers
921 views

Building Credit for a Young Person with No Credit

I don't have any credit established but I'm a computer programmer and I make pretty good money. I'm 21 and I would like to buy a new car. I can't get a loan because I don't have any credit and I've ...
3
votes
5answers
609 views

Co-signer defaulted: Can I take the item back?

My friend bought a bed online and needed help financing it. I agreed under the pretense that I was a "co-signer" on the loan. Turns out I was the actual person taking out the loan. At this time, we're ...
0
votes
4answers
342 views

Is buying a powerful motorcycle on loan is a good idea?

I am thinking of purchasing a Ducati motorcycle. Its price, including taxes, is about $22K. I don’t own a car so I have no car payments. I had a $50k education loan which I paid off. I have about $...
11
votes
3answers
8k views

Credit life & disability Insurance on vehicle loan for elderly buyer: Does it make sense?

An older gentleman needs reliable transportation to replace his 10 year old vehicle with over 100k miles. He can afford the payments, but doesn't want to burden his younger wife with payments she ...
1
vote
2answers
279 views

Where can I borrow a few thousand dollars for moving expenses?

I am working at a software consulting company and they just informed me that I am going to need to relocate for my new client project. Problem is that it is on the other side of the country, over 1200 ...