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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Which days count when daily rate is used to calculate interest?
Say you get a loan on Jan 20 with monthly payments due 15th every month. You have the money in your hand some time in the middle of Jan 20 already, that’s the day when the contract came to existence. ...
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Federal Perkins Loan is showing up unsubsidized despite not taking any unsubsidized loans
I've been repaying student debt and my university recently sent a loan that I didn't know I had to a collection agency. The loan is listed as a "federal Perkins direct Stafford" loan that is ...
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On what basis do countries repay international loans? [closed]
Most countries have their own sovereign currency. Essentially they can print their currency. So how do countries repay their loans? And a similar question would arise while granting a loan to another ...
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Is the holiday season an unwise time to apply for credit?
Given the rise in consumer spending during the holidays, do lenders mitigate the increased demand for credit by offering lower credit limits than usual, or having stricter criteria for approval?
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How does “Velocity Banking” actually work?
I’ve seen this mentioned a few times now in various financial articles, but it smells like some kind of “system” a gambling addict would come up with to “beat the house”. Doing a web search on it, I ...
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Are indexed universal life insurances of any use from a tax mitigation standpoint (= looking at after-tax returns) vs. a regular investment account?
I am a US lawful permanent resident. I am interested to know whether indexed universal life insurances have any upside from a tax mitigation standpoint compared to a regular investment account. I.e., ...
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4
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Why doesn't just everyone mortgage a property from bank, rent it out and make monthly payment to the bank by that rent?
I don't have any background of loans and finance since I am an Engineer, but I have been planning to own a property lately. What I understood from my research is that there are two options to get a ...
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359
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Better to withdraw from 401k or take out home equity loan for investment opportunity?
There is a fast-approaching investment opportunity (January) that I very strongly believe will have significant short-term (2x - 5x within a matter of months) and long term returns. I need ...
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How to prioritize paying back loans based on interest?
If I have a loan at 0% and can get a 7% return on my capital, then I wouldn't want to pay back that loan until the absolute last moment.
If I have a loan at 14% and can get 7% return on my capital, ...
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166
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Could a bank take out a loan from another bank?
It costs a lot of money to start a bank from the ground up, for obvious reasons. To get this starting capital, unless the person starting the bank is already wealthy enough to pay for it themselves, ...
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How can one debt-finance a corporate takeover and then transfer debt to the company? [closed]
I'm reading about the Glazer family's takover of soccer club Manchester United nearly two decades ago. They apparently debt-financed their takeover, borrowing hundreds of millions of pounds, and some ...
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What are some of the factors that affect loan pricing?
In an interview for a bank, I was asked about some of the factors that could affect loan pricing.
They asked me which of the following factor should not affect loan pricing:
credit rating of sponsors;...
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99
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Taking home loan and car loan separately with some down payment or taking one loan without any down payment. which one is good?
Am from India and planning to buy a house and a car. I have ~10L in my hand. House costs around 36L (Including Registration and other charges) and car cost around 11L (on-road price).
So paying down ...
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Are there any loan options for the international students in the US? [closed]
I am an international student of one of the university of California campuses. I study PhD and am a fully funded student with around $30,000 annual salary(before tax).
I need about $5000 in cash and ...
user109157
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What is the procedure of getting an auto loan?
I am a new international student in the US. My credit score is 702 in the Capitalone credit wise and 710 in the CreditKarma website. I am a fully funded PhD student and have an annual income around $...
user109157
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Loan Payment Formula Terminology
Consider the following formula:
Payment = P * ([r * (1 + r)^n] / [([1 + r]^n) - 1])
Do any parts of this expression (not single variables) have a name? For example, (1 + r)^n repeats. Is there a name ...
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Calculating Total Interest on Loan
I have found some sites stating:
Principal * Annual-Interest-Rate * Term-Length-Years
... but this does not calculate the total interest paid correctly. This formula neglects a shrinking principal ...
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How do banks balance the books after a borrower defaults on loan repayment? [closed]
Buyer gets a 10k loan to buy a tractor from Seller.
In the banks' books:
Buyer
Assets
Liabilities
10k deposit
10k repayment later
Bank
Assets
Liabilities
10k repayment later
10k deposit for Buyer
...
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Can I take out a loan and pay it back immediately to avoid interest?
Ignoring why I would do so, I am wondering if it is possible to take out a personal loan (at, say, ~6% annual interest) and then pay back the principal + any interest back within a short time (within ...
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How to write down each month borrowing over past month
Since Pandemic I had lost my job and borrowed money or money sent by my parents from saving but I couldn't write it down as I am financially illiterate/bad with maths. Now and in past, it has caused ...
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Why do business loan interest rates vary that much?
this might be a very basic and stupid question, but I've just recently started considering bank loans for my business (Covid...) and I have no experience with this world whatsoever.
I've noticed that ...
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Is there a price point beyond which it no longer makes sense to buy an apartment or house?
I am in a very frustrating situation right now. I have accumulated a decent amount of value in cash and stocks. My wife and I however are still living in a rented small flat in our town in Austria ...
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Repossession fee refund after 8 years [duplicate]
2013 our car was repossessed by WellsFargo Dealer Services
It was sold at auction and fell off my credit report this year. Today I received a check for$125 from an over charge of the repossession fee.
...
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What are the legal and tax implications of crypto lending?
With high interest rates for crypto loans, I'm currently thinking of lending out my cryptocurrency on a crypto lending platform like Celsius Network. However, I'm not too sure about the implications ...
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Would being a co-applicant on a loan have any impact on minimum payment each month?
My mother and I are considering getting a loan through the Dividend Finance programme to have a solar panel installed. My mother filled out the primary applicant section of the application and is ...
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Avalilability of very short term loan options for non-salary individual in India
I am a student and I have a non-salary account. I mean, I am not getting salary and getting money every month as scholarship. The amount I am getting as scholarship is not less and is at-least ...
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Remaining Balance Formula for Actual/360 and Actual/Actual Accrual Methods
Is there a concise formula for calculating the remaining balance of a loan with actual/360 and actual/actual accruals?
I know for 30/360 amortizations, the remaining balance is just the FV of the ...
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570
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Formula for time taken to pay off loan with annual interest and monthly repayments
I am trying to find how to work out the period of time it will take to pay off a loan. There are plenty of online calculators out there but I cannot find the formula they use. I want to recreate the ...
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Do collateralized loans impact your credit score?
Do collateralized loans impact your credit score?
Such as a securities loan collateralized by your stocks, a refinance on your home, a personal loan collateralized by a car, and so on.
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How fast will my credit score increase?
I have 12k in students loans (all of which isnt required to start making payments until Q4 2021) owed to non-government lenders, and have roughly a 1.5k credit balance currently, with 3 lines of ...
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What happens to the dividends when you enter into a securities-based line of credit or "portfolio loan"?
For this example let's say you have a stock portfolio that is paying you dividends and you take out a securities-based line of credit against the portfolio from your local bank. What happens to the ...
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Is buying a mortgaged property profitable?
I am planning to buy a property and wondering if this property is worth buying.
A. Price of property including everything: Rs 45 lacks
B. Down payment: Rs 5 lacks
C. Loan/Mortgage (C = A-B): Rs 40 ...
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401K Loan - Company switched providers and rules
My company (a large health co) merged with a larger Pharm Co. In this process, we basically got all the Pharm Co benefits. When with the health co, I took out a 401k loan which had the provisions that ...
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What is the cheapest way to pay off this loan?
I recently took out a loan in order to buy a car for work.
The contract is over a five year term, with a total of 60 monthly repayments, at an interest rate of 13% pa.
The way the lender wants me to ...
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Borrow and return HSA funds in same tax year - taxes and/or penalty?
I've had an Health Savings Account for several years now, and I know I can only take out funds from it for qualified medical expenses.
I'm wondering if there will be any taxes and/or penalties if I do ...
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If the loan interest is lower than inflation rate, does it mean it would be less expensive to take a loan and spend now, than save to buy later?
I am considering to buy an upright piano. For that, I have been planning the budget I would need and how much I would have to spend/save to be able to buy it .
A few things to consider:
The piano ...
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How can such a thing as a "fully collateralized" Bitcoin loan exist?
Let's say I want to buy a house, but I don't want to spend any of my 10 BTC. So I want to borrow 1 BTC.
In order for me to not be able to scam whoever lends me that 1 BTC, I have to "fully ...
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Can I use my lot as security on a credit line?
I purchased an empty lot next to my house. I'm very glad to have it, but I did naively think that perhaps that I could use this lot as something like a credit card. Using it as collateral for a ...
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Would a hypothetical, ever-appreciating asset allow for infinite collateralized loan-rolling?
If I owned a hypothetical asset that was deemed extremely safe, and permanently increased in value over time (allowing me to borrow a similar percentage of the asset's value each time the loan reached ...
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Taking out a 401K Loan vs. Liquidating Investments - what's better?
Let's assume the following:
I need $50K for various expenditures (aka simply spending, not paying off CC debt or putting the money somewhere else).
I can either liquidate regular taxable investments ...
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How does 401k loan default after you left your job?
I'm trying to find some basic answers here but having a very hard time. I have a job currently and I'm about to lose it. I have pulled out a 401k loan and paying it back through the payroll deduction.
...
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My parents live in England. I live and file taxes in the US. I want to make them an interest free loan to buy a house. Payable at death / house sale
I considered purchasing it as joint tenants in common but that triggers stamp duty on the entire purchase as I’m a non UK resident. I thought they may be able to amend their will to represent the ...
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What is a difference between "Tender Offer" and "Tender & Offer"?
Would someone be so kind to please answer me on two different questions:
First: I'm aware tender offer has something to do with getting the stocks directly from shareholders, according to some ratio, ...
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How do I know whether zero-percent finance or bank loan is cheapest option?
I have been considering purchasing a car. There are two methods I use to pay for it:
Method 1: The advertised price is $6,000 but there is a “Zero Percent Finance” offer that the shop has ...
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Can my property be taken as a payment for a relative's loans?
My aunt went to several loans to which she isn't capable of paying as of now. Now, the lenders are visiting our house and trying to find her and she currently lives in the same residence with me, ...
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If I pay off a lien on a car, do I own that vehicle?
My boyfriend and I have been together for 13 years. He has been separated from his wife for 20 years. He has a lien on his car, and he did not will it to anyone. If I pay the lien, do I own it?
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Bank treating loan as asset
I understand bank treat loan as asset but isn't it the cash reserve being transferred from bank to borrower, resulting in reduction of cash reserve of bank and hence reducing its lending power.
From ...
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Have I correctly understood the logic of lending money to a bank? [closed]
Let's say that I am able to convince my local bank to borrow 1 Bitcoin from me today, with them allowed to hold it for at least a year before I am able to ask them to give it back. After a year, if I ...
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Deposit and lending real money
It is universal that banks use deposits for lending and make money in the form of interests.
My query is if bank utilising the deposit for lending,why it isn't reflected in depositors account? Say for ...
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why would a mortgage lender be asking someone a year away from retirement about their pre-retirement income?
My 69yo mother is looking to buy a new house (and sell her current one). Based on what she's expecting to get for her current house, how much she still owes on her current house and how much a new ...
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