Question by Derek B: How does a bad credit auto loan really work?
My credit score is probably 0 (yes I know that’s not possible) but it’s pretty bad. Say for example I want a ,000-,000 car, how much would I have to put down and how much would the interest typically be?
Best answer:
Answer by ja517@y7mail.com
You would have to put down minimum 10% and probably have to pay a loan that has a 30% interest rate.
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Question by ronnieD: How exactly do ‘interest only’ mortgage loans work? When do I pay on the principle of such a loan?
I know APR loans are a bad idea, but how would an interest-only loan work? Would it still be a 30 year note, or do they extend the loan? Would I be able to get a fixed rate with an interest-only mortgage loan?
Best answer:
Answer by Miss Emily
Every loan has an APR, what people refer to as “bad” is an ARM (adjustable rate mortgage).
An interest only loan is usually amoritized over 30yrs. But yes, you are just paying interest only & NOT paying anything towards your principal. If after 30yrs. of paying Just the interest on say a 0K loan,,,, after 30yrs. you would still owe 0K, at which time you would sell the home or just refinance. Most people do not pay interest only on the same loan for 30yrs.
If you have an interest only loan, it is because you couldn’t afford to pay the principal as well when you first got the loan. You should contact the bank who holds your mortgage note & ask if you have a “pre-payment” penalty OR if it would be OK to make some payments towards your principal.
If you’re currently on an adjustable rate interest only loan, it would be better & safer to refinance to a fixed loan payment. Even if it is interest only, just make sure you ARE able to, if you want, to make extra payments towards principal.
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Question by NUnum1: How does a grad school loan work with company-reimbursed tuition?
My company will reimburse my grad school tuition based on my grade for each class. Am I supposed to get a loan first and pay off the loan with the reimbursement money, or do I wait til the end of the semester to pay the tuition? Any good sites for grad school loans?
Best answer:
Answer by Found-1
Think of the tuition reimbursement entirely separate from any loans you get. The school does not care if you apply for fin aid or not.
However, unless you have the cash to pay your tuition without the loan, you may have to take out a loan to pay your tuition. Most schools require you to pay your tuition up front.. but some do have payment plans on sort of a “pay as you go” through the semester to be paid off by the time the class is finished.
To apply for a grad school loan (Stafford at fixed 6.8% interest) go to http://fafsa.ed.gov
Your employer should pay you after your grades come in… its up to you what you do with the money. Best to pay off the loans, but not mandatory.
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Question by A. S: How exactly does a secured loan work?
If I got a secured loan against my home and I sell me home, do I have to pay my unsecured loan off when I sell my home? Or can I continue to have my loan and pay it off every month for the term of the loan?
No, I am not talking about a home equity loan. A secured loan against my home- do I pack that back when I sell my home or not?
Best answer:
Answer by gtplayb0y
It seems like you are describing a Home Equity. At the bank I work, if you sell the home within 3 years, you are obligated to pay it off. However, if you purchase a new home and have enough equity in the new home, it can be transfered.
In a Home Equity Loan, you are promising to pay it back or else the bank can take your home.
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Question by PrettyBoi: How does a preapproved car loan work?
I’m about to get a new car just dont know what yet. Want to get the loan today because Friday Im going to go look. Want the money with me so I can buy it on the spot.I know for a regular car loan they ask for a VIN number.If I get a preapproved loan and dont use all the money that is on the loan how would i use or return it?
Best answer:
Answer by master_mind_delinquent
Some banks pre-approve you for a certain amout and the dealer works with that bank directly; not too many banks give you a blank check with a certain cap off amount. Stick to your bank, dealers always want you to sign up with their banks, i think you end up paying for more. When you walk up to a dealer pre-approved for a certain amount, its like walking in with cash so you can negotiate since they dont have to pre approve you. Go to a Credit Union they have better interest rates than banks do. Good luck.
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