All Questions
46
questions
1
vote
2
answers
439
views
Are there any amortized home mortgage loans where the monthly payments are distributed equally between interest and principal?
Are there any type of home mortgage loans where the amortized monthly payments are equally distributed towards the interest and principal? I understand this would violate the current formulas used to ...
- 45
1
vote
1
answer
2k
views
Are banks willing to lend money to one-man APP startups?
I am one person building a social-media-ish APP. I am 2 years along. Let's say that it's 90% finished.
How do you get a bank to lend you money for this APP?
9
votes
2
answers
3k
views
Are demand and time deposit accounts really loans _to_ the bank?
Borrowers pay interest to borrowees any time they take out a loan.
The Government even pays interest when you "buy" it's notes and bonds.
Banks, too, pay interest to deposit holders. Does ...
- 50.7k
5
votes
2
answers
3k
views
Why the calculated cost of a loan is less than expected? Is the bank working at a loss?
Let's say I want to borrow $1000 from a bank at an interest rate of 12% per year, for one year. The number of payments in this case is equal to 12 (one year * months per year) and the interest rate ...
- 169
3
votes
0
answers
349
views
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 ...
- 309
0
votes
2
answers
261
views
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, ...
- 3
-3
votes
2
answers
260
views
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
...
- 157
0
votes
1
answer
150
views
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 ...
2
votes
1
answer
218
views
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 ...
- 121
-4
votes
2
answers
246
views
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 ...
36
votes
7
answers
3k
views
How does a bank lend your money while you have constant access to it?
How do banks / fintechs lend your money while you have constant access to it, ie. can withdraw at any moment? I assume there is some kind of liquidation pool, but how exactly is that managed with ...
- 477
1
vote
0
answers
32
views
Question for Xenith (Eikon) Expert - Is the following data available...?
In the ''Universe'' tab are many different options: Government and Corporate Bonds, Equities, Funds, Indices, Equity & Index Derivatives, Companies/Issuers, Commodities, FX & Money, Benchmarks ...
- 11
4
votes
1
answer
219
views
Can banks charge a lower interest rate for loans than for their fixed term savings account and still make profit?
A friend of mine got a loan of 1,000,000 at an interest rate of 10.6% per year for three years and then deposited that 1 million at 3-year fixed-term non-accessible savings account with a return ...
2
votes
4
answers
147
views
What are some rule of thumb criteria to choose loans?
When one wants to take on a loan, they can do so from multiple banks. There are also comparison websites that allow you to see various loan offers from each bank. Most of them use the annual ...
- 123
-5
votes
2
answers
144
views
Compounding Interest
How to calculate compounding interest and maturity value of recurring deposit.
e.g. Mr A deposit $ 1000 per month in bank @ 5% p.a. for 5 years. Interest compound quarterly. How t0 calculate maturity ...
1
vote
1
answer
771
views
How are fractional cents handled when bank create a loan payment schedule
I am working on developing my own loan payments schedule generator and I have a question regarding how fraction cents
For example, this load:
Principal: $10,000
Interest: 5% per year
Period: 48 ...
- 11
0
votes
1
answer
191
views
How to calculate a loan constant payment (like PMT) but extra double paying (without interest) twice a year
This is my first post in this community, already tried to find my answer, and didn't succeed :(.
I'm working a way to understand the formula behind a loan that allows the client to extra pay the same ...
- 111
-3
votes
1
answer
89
views
With reserve requirements eliminated what reason banks have to not approve every loan? [closed]
Quoting wikipedia:
On March 16, 2020, amid an economic crisis caused by the 2020
coronavirus pandemic, for the first time since the inception of the
Federal Reserve, the fractional reserve ...
- 327
2
votes
3
answers
4k
views
What is the difference between a loan and credit?
From other sites I’ve gathered that loans are for long term purposes (12-48 months) with lower rates of interest, while credit is mainly to meet monthly purchases with higher (monthly) rates of ...
- 123
2
votes
4
answers
2k
views
who is the owner of Loan money paid back to bank [closed]
There is bank which have account of three persons :--
A = 900 dollar in account
B = 900 dollar in account
C = ZERO dollar
Now if C went to same bank & take 900 dollar Loan from bank on ZERO ...
- 123
1
vote
1
answer
193
views
Taking a loan with a low interest and putting it into a Savings deposit with High interest [duplicate]
Can I make money from taking out a loan from a country with a low interest rate (such as Switzerland, that has an interest rate for loans from 4.9%) and put it into a fixed savings deposit account in ...
1
vote
2
answers
281
views
effective rate loan installment
Why is it that the effective rate is based on compounding and it is also paid only on the remaining loan balance in compounding interest we pay interest on interest?
Can someone explain in to me? what ...
- 11
-1
votes
1
answer
817
views
how to find flat rate of interest per annum and month if we have given reducing rate of interest or loan amount and tenure?
For example: For loan amount 500000 for 5 years at the rate of 12% (reducing interest rate), EMI is 11,122.22 per month Here 12% reducing is equivalent to flat 6.69% per annum or flat 0.55% per month.
...
5
votes
1
answer
2k
views
What happens if you don't pay the credit card or personal loan amount, and then leave the country?
My friend went to India without paying his credit card balances of around $150K. Now he is unable to pay due to losses in business. What kind of actions can happen from credit card companies and/or ...
- 51
1
vote
1
answer
136
views
Loan calculation with percentage [closed]
I want to know monthly payment with percentage. Let's say I took loan of $200 and I have to pay monthly for 5 months and amount pay back is $260. Over here $60 is interest. I could make out that I ...
- 113
0
votes
3
answers
311
views
Why do banks offer credit cards with less than 7% APR [closed]
On average stock markets make about 7% per year adjusted for inflation. So given the choice of lending a stranger money who will give me <7% APR or putting it in the stock market for a few years I ...
- 137
0
votes
1
answer
154
views
Bankruptcy with liability and credit
Suppose you took a loan and have to to pay it off uniformly. You made more money than you initially thought when you took the loan and have yet to pay 50 000 $ off, but have 20 000 $ credit on an ...
- 922
5
votes
1
answer
4k
views
How does the bank/IRS know whether a bank transfer over $14k is a gift or loan repayment?
Suppose I want to help a relative, an international student, pay his college tuition before he arrives in the US (let's say the amount is $20k, i.e., over the $14k tax-exempt limit for gifts). He'll ...
- 183
1
vote
2
answers
156
views
Letting your bank withdraw money from your check for a bill?
What is everyone's thoughts on having your bank withdraw money from your check weekly to pay a bill. In other words I have a signature loan and they withdraw 20 dollars from each check to put it ...
- 11
1
vote
1
answer
118
views
For deposit insurance limits, are accounts cross-collateralized?
The FDIC deposit insurance limit is $250,000 per depositor.
Let's say I have $350,000 in my savings account and a loan with an outstanding principal of $200,000. The accounts are with the same bank.
...
- 241