102
votes
Does a company have to have your login information to verify your identity?
No. Anyone who asks for your username and password is very likely a scammer. Access to id.me is especially valuable as it would allow the scammer to essentially steal your whole online identity. Make ...
- 166k
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
37
votes
I have to pay back my student loan. When is the best time to do it?
That mortgage would be lowered by twice the amount of my student loan.
doesn't sound too bad, since the other place you can put the money is into "down payment" and that has between 1:1.5 ...
- 6,788
29
votes
Do I use savings to buy a car?
At 11.7% I would definitely avoid going into debt for a car and pay from savings. Just make sure that you have enough savings left for unexpected events or bad times.
- 7,422
28
votes
I have to pay back my student loan. When is the best time to do it?
Anytime you can borrow money for less than 1% APR interest, the perfect time to pay that off is "upon your death". You will never be able to borrow money more cheaply in your whole life.
...
25
votes
Are demand and time deposit accounts really loans _to_ the bank?
Yes.
When you deposit a sum of money into a bank account, that account is an asset for you. At the same time, it is a liability for the bank.
Let's say that you are depositing $1000 to your bank ...
- 115k
18
votes
Do I use savings to buy a car?
Let's consider options.
If you take out the loan, and assuming you pay it back over 4 years, you are going to have paid out roughly £1500 in interest. You would be able to keep the £7000 in a savings ...
- 33.1k
15
votes
Accepted
How do loan payments made before the end of the month affect payment due for that month?
It depends on the terms of the loan and how you classify it, but the 3 common ways it can be applied are:
The accrued interest up to the day of the payment is calculated, and the remainder of the ...
- 130k
14
votes
Salary doubled on credit app - what could happen?
IANAL, and it depends on the laws in your location, but that sounds like a situation where the lender might be able to default you (and force full repayment) based on misrepresentation of income, even ...
- 6,508
14
votes
Accepted
How to compare loan interest rate to savings account interest rate?
The question boils down to the taxes. If your loan is tax deductible (e.g.: mortgage loan or investment interest, and you're itemizing the deductions), then the tax benefit reduces the loan cost. Your ...
- 166k
14
votes
Are banks willing to lend money to one-man APP startups?
Two options:
Personal loan. In this case the bank doesn't care what you're using the money for. You just ask for money and promise to repay and do with the money whatever you want. Usually these ...
- 166k
11
votes
I have to pay back my student loan. When is the best time to do it?
OP is using the wrong (outdated) calculation.
The "twice study loan" rule of thumb was based on the old study loans which have to be repaid in 15 years. Since the duration has more than ...
- 2,743
11
votes
Are there any amortized home mortgage loans where the monthly payments are distributed equally between interest and principal?
Such a product does not exist. And it would be pretty unlikely that you'd be able to get such a thing past a regulator and ensure that you as a lender actually make money.
Let's work through the ...
- 26.5k
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
10
votes
Are demand and time deposit accounts really loans _to_ the bank?
Conceptually, yes, we are lending our money to the bank, and it is leveraging those loans to make other loans at higher interest rates.
It differs from most loans in that we can increase or decrease ...
- 42.9k
9
votes
When is it worth taking out a loan for something I could pay in cash?
Theoretically you can make more on average by investing than borrowing. But there are two HUGE caveats:
In practice, most people are not as good at investing as they think they are. Humans are ...
- 130k
9
votes
Can applying for a new loan affect my existing mortgage? (US)
The FAFSA is the Free Application for Federal Student Aid (FAFSA).
The form is used to look at your school expenses, income, and savings and determine how much you can afford to contribute to your ...
- 136k
8
votes
How does a rollover work with Bonds?
It depends on how the system is set up. For example with treasury direct you can tell the system to automatically buy a new bond when the current one matures.
What happens when you want to do this for ...
- 136k
8
votes
My girlfriend helped me buy a car - Who is responsible if she takes it back?
Since you've said both your names are on the car title, the car is owned jointly by you; if it's in one person's name, they are the owner (barring community property laws and things of that sort; I'm ...
- 42.9k
7
votes
Musk bought Twitter with $13b loans - why is *Twitter* liable for this debt rather than Musk?
The way the deal was structured was that Twitter essentially repurchased its own shares from the public and then sold itself to Musk.
Twitter spent $13b on that, Musk spent IIRC another ~$26B, and his ...
- 166k
6
votes
Do I use savings to buy a car?
If you think that £1500 repair bill will let your car run for another year then it is technically the best option financially because £7000 at 11.7% for 5 years costs £1848 per year. However, read ...
- 8,287
6
votes
Accepted
When is it worth taking out a loan for something I could pay in cash?
In the UK, if you buy something on credit (over £100, under £30,000 if I remember right) then the credit provider is jointly liable with the supplier for the product. If the supplier goes out of ...
- 302
6
votes
Accepted
If loans are sold at discount to other lenders, why isn't the same offer given to the debtor for payoff?
Why wouldn’t the payoff amount of the loan be discounted similar to a bond with lower yield than current market rates.
You're confusing the yields to investors with debt obligations. When a bond is ...
- 166k
5
votes
I have to pay back my student loan. When is the best time to do it?
Look up Mortgage Rates
It seems likely to me that your current loan rate is well below the current mortgage rate. In the US, a mortgage at 3% was considered historic lows, and in early 2023 Americans ...
- 1,409
5
votes
Is car loan the better option when one has already saved enough to cover the purchase
I'm coming at this from a U.S. perspective - this might be very different in other countries.
If the loan payments eat up half of that person's salary, that's likely way too much car no matter how ...
- 6,508
5
votes
Would a personal loan likely be denied if the intended use was real estate?
The reason why the bank won't give you a mortgage for a property abroad is probably because the laws abroad do not guarantee them that they can repossess the property if you fail to pay your mortgage ...
- 23.9k
5
votes
When is it worth taking out a loan for something I could pay in cash?
If you can pay for it in cash, the only reason not to do so is because you are getting better return rates on the money where it is than the loan is charging you -- essentially, a leveraged position.
...
- 42.9k
5
votes
How to compare loan interest rate to savings account interest rate?
Should I put excess income towards the loan or savings?
Depending on tax rates, and if are going to deduct the interest , you can calculate which is better mathematically.
But what is the savings for?...
- 136k
5
votes
How to compare loan interest rate to savings account interest rate?
Loan interest is front-loaded. Savings interest is compounded.
Use an amortization calculator/table and a savings calculator to visualize the interest and decide which one makes more sense.
Loan - ...
- 8,287
5
votes
Why aren’t amortized loans outlawed and replaced with a more equitable model to the borrower?
If you restrict how much profit the bank can make from lending, you'll get less lending. And that will prevent a lot of people from getting loans at all.
If we're talking about a $500k loan, that's ...
- 26.5k
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