Loans
Loans questions and answers
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Q: loans.....?
I got someone to cosign for my autoloan but will they be able to if they have a few loans already taken out?
A: only if their credit allows it, if they are not capable of taking on your loan on top of what they're already paying, then most banks wouldn't allow it.
Q: How do I get loans to obtain another bachelor's degree in a different field?
I was denied loans to obtain my bachelor's in nursing because I ALREADY have a bachelor's in business. I need my nursing degree for the field I now want to go into, but I have to get student loans to obtain it. I have never had a student loan so why is this so difficult? Will the new stimulus package help with the student loan process?
A: I am in the same situation as you. Here is what I did.
Fill out your FASFA form online (www.fafsa.ed.gov). Add all the schools that you intend to attend on your FASFA. Different schools have different deadlines to have your FASFA submitted. The earlier you submit your FASFA the better so that you can meet the deadline for all the schools. You must obey your school's deadline not the federal deadline for your state. The school receives money from the FED and they prepare a financial aid package for all the students that meet their deadline and that are accepted. The student package consist of scholarship, Stafford and Perkin loans. This all depends on your family's expected contribution toward your education. Whatever amount extra that you need you have to get a private student loan which is credit base. Your parents could also take a student loan on your behalf. For private student loans try Discover student loans and sallimae as. Your school should have a list of all the lenders that offers private student loans as well as a list of scholarships that you can apply for. Good Luck !!!!
If your expected family contribution is zero and you are interested in working in undeserved communities after you graduate for a free education. Check out the following link:
http://bhpr.hrsa.gov/nursing/scholarship/applicantbulletin/default.htm#benefits
ss
Q: What can u tell me about business loans to start up a new business?
In the process of opening a new business. How do business loans work - I know I need a business plan etc before I can apply for a loan, but what's some other info? What's the interest rate range, what's the range of how many yrs u can have the loan, range of amnt they can loan, will they include the first yrs lease amnt in the loan if needed...etc, etc?
We have good credit.
A: A true business credit card is a line of credit that is taken in the name of the business, under the business' credit. Activity, whether good or bad, is reflected on your business' credit report through D&B and other financial institutions, and the liability for any debts incurred and bills owed is with the business.
However, some companies out there offer "business" credit cards which they require a person guarantee for. These institutions will often ask for a personal guarantee, and will almost always ask for a social security number from the person applying for the card. If this is the case, the credit card is not a business credit card, but is simply a personal credit card which is used for the business. The business is not liable for bills and debts - you are.
When applying for a credit card for your business, watch out for areas asking for your SSN (and not your TaxID or EIN) and be wary of any credit card that asks for a personal guarantee. By ensuring that your credit card is in the name of your business, you can help to build your business' credit, while avoiding creating problems with your own.
Many companies offer a list of credit cards that are issued under the business name only. Those lists typically run $300-$900, depending on the quality of the information inquiring. I would suggest starting your search online via google or yahoo. Search for "strong business credit" (just like that in quotes) to find services that sell the information.
Good luck,
Ilya Bodner
Small Business Owner
Initial Underwriting Group
Q: What types of loans are out thier for first time home owenrs with good credit?
What types of loans are out thier for first time home owenrs with good credit? The place that I want to buy is about $185 can I still get a zero down loan? If not what is the next best thing?
A: JJ I would be very careful asking for help with your financials on this venue. What you are most likely to get are solictations, like you've already gotten.
Do business with local lenders. Should something go wrong at least you can visit them to make sure they correct it.
As for the actual question, FHA and USDA have good programs, the VA as well especially if you were wounded.
Best of luck!
Q: How do construction loans work?
My husband and I are working with a builder of a subdivision we are planning on building in. We chose a home from the options this builder has for the sub. To get started on the house, we need to give him $5,000 down. However we do not have the funds saved so we are able to do a construction loan. I've heard so many things about construction loans and how the fees are horrible. Yet, its been so hard for me to find any information. Would the fees be that steep, even though we only need $5000 down? Is there any specific banks/companies out there that make this process easier that anyone would recommend? Any help or information would be greatly appreciated. Thank You!
A: It doesn't sound like you are being required to get a construction loan. The builder is asking for an earnest money deposit. Typically, builders require $5,000 to start the home and would ask for an additional 5 or 10 during different phases of the project. If they are going to build something to your specifications, they want you to have enough money into it so you don't back out. The only financing you will need is a normal mortgage, once the house is complete. You will be able to use the money given to the builder as the down payment. Otherwise, you can buy the model.
Q: difference amortized housing loans and refinancing of arrears housing loans, what is the principles behind?
my housing loans is for 30 year amortized monthly. arrear for several months and want to restructure loan. what is the best
options. Difference between amortized housing loans and re-financing of default housing loans?
A: It boils down to several factors, all of which will cost you money. Both are esentially new loans. The first is starting over again for 30 years with your existing mortage, your arrears, points, and origination fees. This gives credit for what has been paid towards principal. A re-fi is also a new loan. You must requalify. Considering that you are in arrears this might affect your credit rating, but you may be able to get a better rate.
You should talk to a processor and have them determine when a break even point would be with each loan. The break even point is when you have paid off the extra that the new loan cost. The shorter the time, the better the loan. You might also consider taking out a signature loan and just pay off the arrears. This may be your best way to go.pp
Q: How many US auto loans and home mortgages financed by banks are out there?
I'm trying to discover the # of US home mortgages and auto loans financed by banks in the US and the average value of each type of loan. It's for a school project.
A: Go talk to an officer at your local bank. There are many tens of millions of each, but I don't have exact data.
Q: What happens to subsidized loans for college if you take a summer off?
Subsidized loans for college, says the goverment pays the interest as I attend school at least on a half time student. Which is 6 credits a semester. But what if I only take one (3credit class) or even take the entire summer off? Will I be responsible to start paying for my loans, even if I would go back in the Fall Semester?
A: Well, if you fall below part time for 6 consective months, then you have to start paying them back and interest WILL then start to incrue.
That is fine though, everyone doesn't do summer schoool. So just get at least part time during fall sessions and everything will be fine. Summer months only last no more than 3.
Q: What are in-school deferments in reference to student loans?
I just checked my loan balance page, and it says for the two loans from undergrad, there are in school deferments for a period of time.
I'm currently in school again right now, and will be for the time frame of these two loans. Does that mean, while I'm in grad school, I don't have to pay the undergrad loans? Or, is there more to it?
Thanks!
A: You have the idea exactly right. While you are in school the loans are still in deference (or you do not have to pay back at that time). You indicated that it will be defer(ed) while you are in grad school- that still works out fine because that means you will not be required to pay anything until at least you are out of school! I don't believe that there is anymore to it then what you posted and I hope this helps!
Q: What happens to 401k loans when you change jobs?
If I am planning to leave my job in the near future and I have 30k in my 401k and approx. 12k in loans, how will the loans be repaid? Do I pay the taxes at year end? Also what if I decided to cash out the rest?
A: It depends on the requirements of your 401(k) plan. Some 401(k) plans allow you to continue to make payments on loans after you leave your job. Others require you to pay back loans within a certain number of days (often 30, 60 or 90) after you leave, or the loan will become a distribution.
If you have the money and want to pay back the loan, you can call the 401(k) administrator to find out where to send the check. The administrator should also be able to tell you about how the loan can be repaid - if it is within a certain time period, or if it can be over the original life of the loan.
If the loan becomes a distribution, you will owe your marginal tax rate plus a 10% penalty, when you file your taxes for the year the loan was determined to be a distribution. On $12k, if you are in the 25% bracket, you will owe $4200 in taxes. If you do not have enough withheld from your paycheck to cover the additional taxes, you could end up owing penalties for underwithholding, so it would probably be best for you to update your W-4 to have additional tax withheld.
Q: Is paying off defaulted loans that aren't on my credit report going to help my credit score?
I owe $9,000 in student loans. They just started garnishing my wages for $500/month. The loans were from 1998 and do not appear on my credit report. The collection company told me that once they're paid off that they will appear as not in default on my credit.
A: If they are garnishing your wages, that means they have gone to court and received a judgment. Those are public records and will eventually get placed on your credit report.
Paying the debt off will not get a judgment removed form your reports, but it will show it was paid off. The effect to your score will be minor.....judgments hurt your score badly for a few years, whether paid off or not.
Q: How do I consolidate student loans from different lenders?
I have three loans from three different lenders. Who would buy up all three of my loans and give me a decent interest rate? I have good credit.
A: It's never a good idea to consolidate student loans because you are already getting the lowest loan rate available. Just pay off the smallest loan by adding payments to it and pay the minimum on the other loans... then pay off the next smallest loan until they are all done.
Even if you got the same rate by consolidating, you lose, let me explain: It will increase your loan payment. This is not good b/c you will be less likely to add extra payments this way... all extra payments go on the capital... not the interest. Also, there are often hidden charges for consolidating... so check that out first. If the payment is less, then you also have a problem because that means that they have extended how long you have to pay your loa, therefore charging you more interest... banks love that!!!! Do you want to keep your money or give it away????
If you had to consolidate, I'd choose ING as your bank of choice. Good Luck!
Q: What are the best ways to get student loans with a decent interest rate?
I have been in community college for the first 2 years of my schooling so I have not had to take out any student loans yet. I have been applying for loans for this next semester and I have been getting really high interest rates. Some are over 15% which I feel is riduculous. I am 21 years old with good credit and I have used my parents as co-borrowers when applying. They do not have great credit and my dad makes too much money for me to get any government help, but they don't pay for anything. Where should I go for lower interest rate on loans? Also, what is a good amount to take out if I decide not to work next semester? Thanks!
My parents are married so any information I use goes for both parents.
A: This is a pretty standard question. Without spending too much time in a financial aid office, there is plenty you can do get the process started.
Start by going to http://www.fafsa.ed.gov/ and filling out the online form for federal student aid. After finding out what you are eligible for in terms of subsidized stafford loans, you can figure out if that is enough to finance your tuition and expenses. In most cases, it isn't. If you find that you need more money then you are offered, you may want to try a private student loan.
The best thing to do is compare the different private lenders out there, which can be done at http://www.finaid.org/loans/privatestudentloans.phtml
Most of the rates are very similar but do a little research and pick one that you think is best. I would suggest Think Financial. The application process is very quick and easy, and the check is sent directly to you so you can use the money for whatever you want. The limits are much higher with private student loans, up to $40,000 per year. You can find out more information about a Think loan at http://www.thinkfinancial.com . Good Luck.
Q: About graduate student loans, is it possible to deduct paid interest from taxes paid later when at work?
If both spouses have asked for loans , does it make any difference to make a deduction if one or both are working after they graduate ?
A: The student loan interest deduction can be taken in a year you make loan payments which include interest. It can be a year in which you or your spouse are working. It does not have to be a year in which you or your spouse were a student.
The maximum student loan interest deduction per tax return is $2,500. If both you and your spouse have loans, and you can control when you pay, you would want to limit the interest paid to $2,500 per year if possible.
Your deduction is limited if your income is too high. If you file a joint return, you qualify for the full deduction if your adjusted gross income is below $105,000. The deduction phases out completely if your income is $130,000 or more.
There is a worksheet on page 30 of the following publication which will figure your deduction.
http://www.irs.gov/pub/irs-pdf/p970.pdf
Q: How can I go about paying loans that have been in default for 2 years?
I really want to work on paying off my school loans but don't know where to start. I've been in default for a couple years due to my immaturity and now am trying to improve my credit. I've raised my credit score 43 pts in 4 months just by having one credit card and paying it off on time. What do I need to do to get the ball rolling and start paying on my loans? I could pay maybe 100 dollars a month right now.
A: Call them up make payment arrangements, an start shelling out the dough.