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2

You're replacing one loan secured by your house (aka "mortgage") with a different loan secured by your house (aka "mortgage"). You and your friend must write out an official loan contract (amount, interest rate, years, monthly payment, ability to pay early, fees -- if any -- for early payment, and description of the property). Both must sign it in front of ...


1

Unfortunately, unlike stock, so-called investment in Peer-to-peer lending has no collateral guarantee when shit hits the fan. Since you mentioned Twino, it is a Lativia P2P loan platform. Currently, the most active investors in Latvia’s peer-to-peer lending platforms are residents of Germany, Great Britain, and Estonia. Bear in mind that, collection ...


0

You asked a lot of questions. As a preface to this answer, I will point out that the best way to get the comfort level you're looking for will be to contact the banks or credit unions you have available and ask them how their processes work. Although we can talk in generalities, different lenders will have different policies and different decision making ...


0

The short answer is you might need to provide proof of employment, and you will not be extended credit based on a possible future job. You will get credit based on your current situation and past behavior. Depending on the lender and the type of loan, the requirements will be different. Credit cards have much more lax standards in regards to paperwork, but ...


0

It depends how much, probably. I needed $1'000 back when I was 18. I told them I started my job in 5 weeks; and I got it. It was with Desjardins, in Canada; in case might change something. But if I asked for $6'000... I'm not entirely sure they would have accepted. You're saying you're "going to get a job this week", as in you have it and will start this ...


14

Shop around various local banks for a construction loan. It's essentially a line of credit that will be collateralized by the new house as it's built. Part of that loan will need to go towards the demolition of the old house (which won't be much compared to the cost of the new home) and the clearing of the lot. One problem you might have is that your new ...


1

You asked, Would I still be able to obtain a personal loan? I have been told it's not possible. In order to answer this, we need to take a step back from your situation and think about how lenders make decisions about whom they lend to. Lending institutions will vary significantly on the details of how they make decisions, but generally speaking, for ...


8

Its not likely for these reasons: You currently don't have an income. How can you payback a loan if you have no income? There is no collateral. In the event you do not pay, nothing of value could be used to stand for part of all of the loan. There is no stated purpose of the loan. Lets say someone does loan you some money and then you use all of it to ...


5

A 401(k) loan is not considered in your DTI ratio, as your 401(k) is an asset of yours, not money on loan from another source. While incredibly unwise to take a 401(k) loan out (see second paragraph for a litany of reasons that is by no means comprehensive), It is the equivalent of "Borrowing" funds from an existing account under your control (albeit with ...


5

It does, because it is a regular payment. If a lender is wise, they will view a 401K loan as riskier than other types of debt. An auto loan or credit card does not require a balloon payment when you change a job, but a 401K loan does. And people change jobs frequently.


0

Mortgage is borrowing money. Borrowing is like renting. Renting short term is cheaper than renting long term. If the rent rate is fixed but term is not, you want to "return" the rented money as soon as possible. This means paying off the debt ASAP (even before it's due) to avoid paying interest. Sometimes, mortgages have an early payment clause that allows ...


0

Assuming taxes, repairs and insurance are covered by the renter, then the internal rate of return depends entirely on your assumptions regarding the salvage value of the home. If you assume the home will have no net value at the end of thirty years, then you will take an annual loss of 2% per annum. If you assume you will recover $1,000,000 nominal dollars ...


3

It's certainly legal. Since you will be paying this loan back, however, the bank will need to count the payments against you in determining how much you can afford to pay each month (your debt to income ratio). That will likely decrease the size of the mortgage you can qualify for. It is generally not a great idea. Taking out a loan that reaches or even ...


1

It depends on if you can get a better return on your money than 2.5% (adjusting for tax deductibility of the mortgage interest). If so, you should get a mortgage for as long as possible. If not, as short as possible, while still being able to afford the payments.


0

If i availed the new home loan on ready possession flat and the interest paid upto 1.50 lacs, can i get the tax benefit ? Yes you can designate this as first house and get interest benefits of Rs 1.5 lacs


1

In your agreement you can state that the 10% interest would be added to the loan on the 1st of every month at midnight, and that the interest would be based on the total balance of the loan at that point in time. So it would be [current total balance * 0.1 / 12] every month. Because any overpayments would reduce the total balance, then this would ...


1

From my (limited) experience: either "lend as a friend" with minimal (if any) paperwork, and little or no interest (perhaps a simple fixed sum added to the original amount), or don't do it at all. If you don't know/trust them enough to believe they will do their best to repay (even in the absence of a contract), don't lend. If, because of their ...


1

For the legal jargon I would refer to an online legal document generator. There are many free (or cheap) form generators available that should be sufficient for your needs. But regardless of what the document says, you should only do this if you really trust the person will pay you back. Going to court is a hassle even with a signed agreement, especially if ...


3

You’ve only known this individual for 5 years. I understand that it’s a friend and I’m sure it’s a relationship you care about. But, speaking from experience, (and forgive my frankness) there is absolutely no upside to loaning money to a friend. 10% interest is not worth putting unnecessary stress both on you personally and on the relationship. If you are ...


3

As you have surely realized 10% amounts to less income as the principal remaining on the loan is paid back reducing the lender's overall income. But, you must keep in mind that non-payment is a possibility. Notwithstanding your friend's reliability this friend may get hit by a bus. Generally, you would want to seek a lien on some piece of property for the ...


1

Use excel/LibreOffice function XIRR and then use "Goal seek"


-1

Mathematically a 7K loan with a 10% interest for 5 years would give you $10,500.00. Theoretically, you could equalize the 10.5K payments over 5 years which would come to 175$ / month. This would be the minimum payment that he has to make every month over 5 years that would yield you a 10% interest. On the other hand, if he pays it off sooner, you would ...


4

In the US, these are to my knowledge not a huge concern from a "collateralizable" standpoint. They will be factors in the market value of the home, certainly, and the LTV (loan-to-value) ratio is crucial. In other words, a $200k house made of brick is worth the same as a $200k house made of sticks. They will also be a factor in how much you pay for ...


-1

Brick homes aren't built in the US anymore. It's all stick frame with a brick facade. (I'm sure there's the occasional Rich Eccentric who builds solid brick, but that doesn't count.) And flood insurance is what morphs a bunch of sticks in a flood plain from impending disaster into a house they will write a mortgage for.


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