42
votes
Accepted
Which mortgage should I pay off first? Same interest rate and mortgage length
You haven't accounted for what happens when the small loan is completely paid off.
Seven years into the aggressive payoff schedule you need to shift all original principal and interest payment and the ...
- 136k
11
votes
Which mortgage should I pay off first? Same interest rate and mortgage length
However, I just started thinking, and because of the nature of
amortized loans, I'm obviously paying quite a lot of interest in the
beginning....
This is a common point of confusion, the portion of ...
- 69.1k
3
votes
If loans are sold at discount to other lenders, why isn't the same offer given to the debtor for payoff?
Theoretically, this could certainly work. Practically, however, it doesn't.
The bank that originated your loan almost certainly packaged your loan with hundreds of other loans and sold it to an ...
- 26.5k
2
votes
Accepted
Loan: calculate number of monthly payments with fixed annual interest, fixed montly payment, and 1 additional payment per year
There may not be a closed-form formula to determine the length due to the extra periodic payment, but the algorithm can be done fairly easily in a spreadsheet:
You need 5 columns: Month, Payment, ...
- 131k
2
votes
Does a 401(k) loan count as debt when calculating Debt-to-Income Ratio?
If a lender is going by conventional loan guidelines (i.e. Fannie Mae or Freddie Mac), they do not need to include a 401(k) loan as part of the DTI. Here's the link directly to Fannie Mae's guide.
- 21
2
votes
If loans are sold at discount to other lenders, why isn't the same offer given to the debtor for payoff?
I think there are two main reasons this doesn't happen.
Firstly, it'd be a lot of admin hassle for them to offer a buyout to individual borrowers. They'd have to deal with any relevant consumer ...
- 27.9k
1
vote
How to solve amortization schedule where 10% of the interest is paid back on 4th payment
Here is a quick solution done in Mathematica, using its computer algebra.
Since the first payment is in October I presume the loan commences September, so the first month gains 30 days interest. ...
- 9,677
1
vote
If loans are sold at discount to other lenders, why isn't the same offer given to the debtor for payoff?
The bank gave you $100,000 for signing a contract that you pay them $1000 a month for the next 100 months, plus 1/12th of 3 percent of the outstanding loan every month. That contract was worth $100,...
- 22.4k
Only top scored, non community-wiki answers of a minimum length are eligible