Personal Finance and Money Stack Exchange
Personal Finance and Money Stack Exchange

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.

1127 questions
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6 answers

Does paying down the principal change monthly payments?

I have a 16,000.00 loan at 6.49%. If I pay 6,000.00 on the principal, will it lower my payment? Will it reduce interest each month and reflect on my payment?
BETTY
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11
votes
5 answers

Is there any reason to NOT pay the minimum on all but one of our loans?

My wife and I have multiple loans to pay off: car loans, student loans, and a mortgage. Currently we pay the minimum on all but one of the loans, and put any extra we'd like to pay into the highest-interest loan. We do this because,…
BlueRaja - Danny Pflughoeft
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10
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3 answers

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 advertised, requiring to pay a 10% deposit followed by…
Jack Riley
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7
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4 answers

Does it make sense to take loan when I have the money to pay the full amount?

Let's say that I want to buy a car that costs $15,000 and I have $30,000 lying in my bank. The bank pays me a 1% rate of interest and if I were to take loan then I would need to pay back it at 5% interest. I have no other way of investing the money…
Achilles
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6
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2 answers

monthly payment discrepancy

8/28/2015 original post - I recently took out a loan as follows: loan amount: $116,000 interest rate: 4.75% term: 360 months When I calculate the monthly payment it comes out to $605.11/month. This is the answer whether calculating it in Excel…
knot22
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6
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3 answers

How do loan payments made before the end of the month affect payment due for that month?

I would to understand how loan repayments work. Let's say I take out a loan for $100,000 at 5% for 5 years. I would have a monthly payment of $2,124.70. This payment is expected to be paid monthly. Here now comes my question. Say I make a payment of…
Mr.Rlover
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5
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2 answers

How does a financial crisis affect banks' willingness to lend money to private individuals for real estate purchases?

I am interested specifically in whether banks are more, less or just as willing to lend money during financial crises. Google doesn't seem to return an exact answer to this question and going over articles like this one I get the impression that…
Bogdan Ionică
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4
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4 answers

Loan repayment help

My dad got a loan against his house for $40k and let me borrow 10k. The terms were that I would pay him back the $10k I borrowed. I have since paid $16,800 and my dad says I still owe another $5,800. I pay $400 a month and have been doing so for 42…
Need help
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4
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1 answer

Do I have to do something after 25 years of not being able to make a payment to get forgiveness

My first loan was in 1979 and I have never had enough income to be required to make a payment (despite a Masters in Computer Science). I believe I have always been on some sort of income based plan. According to the Student Loan website loans are…
Androidcoder
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4
votes
1 answer

Equation or program for determining in which order to pay several debts

I have 9 different debts (5 of which are student loans) each with a different interest rate (ranging from 3.4% APR to 10.9% APR). I want to find out in which order paying them off would take the least amount of time. The amount from each loan, once…
user27283
4
votes
1 answer

Settlement Loan

I was in a car accident 4 years ago. I had gone to a settlement lender for a small amount after my income benefits were cut off. I guess I missunderstood how the interest was calculated and found out my payout today. I borrowed 2000 x 2 , 3 yrs…
L Lewis
3
votes
2 answers

Pay down the student loan, or buy the car with cash?

I have a student loan with about 43k remaining. I want to buy a vehicle that costs about 10k. I have excellent credit. The interest rate on my student loan is over 6%; I can get a vehicle loan with very low interest through USAA (much less than…
Ken - Enough about Monica
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3
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1 answer

Correct way to calculating interest accrued with leap year

Principal is $119,654.7 compounding semi annually Disbursal Date is 11/25/2015 Initial Payment is 3/15/2016 Interest Rate 9.1% In this case - there is 36 days in 365 - there is 75 days in 366 - Total of 111 days How should interest…
user3276954
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3
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4 answers

What prevents interest rates from rising?

When you take a loan, you have to pay it back in the form of interest. However to my knowledge interest rates vary over time. What legal factors are preventing the interest rates from spiking and subsequently bankrupting the individual/business?
3XK
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4 answers

Can my parents take out a loan for me out of my account if I'm under the age of 18?

I'm 15 and traveling to Hungary for Christmas. And my parents are paying for half my ticket because that's all they can afford. I have to pay for the other half and have enough for spending money. But I only get 2 shifts a week on an average pay…
Kitana
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