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Is it better to retire a loan before it term or after the term?
Wiki User
∙ 12y ago
As a rule of thumb, it never hurts to get rid of the loan early.
The more credit you are trying to build, the more your score will increase if you pay the loan off with the regularly scheduled payments. This especially holds true for unsecured loans.
That said, there are some loans that contain pre-payment penalties. Pre-payment penalties can end up being a few points (percentages) of the loan. Check with your bank or entity through which you got your loan for any pre-payment clause.
Wiki User
∙ 12y ago
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Is it best to retire a loan toward the end of its term or much before it?
If you mean "pay off" it is better to do it before the lien is up. You pay less interest.
Should you retire a loan towards the end of its term or much before it?
Unless there is a tax benefit that you want/need, you should retire a loan as soon as possible. I am assuming that there is no prepayment penalty, which may impact your decision. It is costing you money (in interest) while you have the loan.
What does a loan term refer to?
A loan tern refers to the length of time a loan is valid, and how long the customer has to pay it back. The shorter term the loan is, typically the better the interest rate.
What is the pay-off on your loan?
It's the amount you need to pay to close your loan, usually before the term of the loan is complete.
What would be preferable to retire a loan towards the end of its term or much before it?
In most instances paying off a financial contract saves the borrower money in terms of interest and fees. However, some loans have early payoff penalties. It would not impact negatively on a credit report. Comparing the amount that could be saved on interest charges with other contributing factors should help in making a decision.
What would be preferable to retire a loan towards the end of its term or much before?
The earlier you can retire a loan, the more money you will save in interest. Assusming it's simple interest, in the first years very little of the payment is going to reduce the principle. Toward the end of the loan term, most of the payment is going to principle and very little to interest, so the benefit of paying it off early at that point is limited. On a long term loan like a home mortgage, you may find that over the course of the first year, the principle goes down by about the amount of one month's payment. That means that if you can pay the equivalent of one month's payment extra toward the principal, you will have reduced payoff time of the loan by a year.
Is it better to get a high interest short term loan or a low interest long term loan?
It depends on how long you need the loan for and how long it would take for you to complete the payment. But in general a low interest long term loan means a higher interest payment over the life of the loan where as a high interest short term loan means less amount of interest payment over the life of the loan.
Term Loans?
form_title=Term Loans form_header=Finance your business with a term loan from the bank. What type of term loan are you interested in?= [] Intermediate Term Loan [] Long Term Loan How much do you intend to borrow with your next term loan?=_ How long to do you hope to take to pay the term loan back in full?=_
How do you refinance a loan?
There are multiple ways to refinance a loan. Most of the time a person would call their institution and make the request. This might come with a fee. Another way is to seek out a different institution with a better rate and term. Do your homework before approaching institutions.
What was Charles haughey's term for to retire?
Retire or resign?
It is better to get a short term loan from a credit union or a payday loan establishment?
It depends on how much money you need. If you can pay back the money very quickly and by your next paycheck, it is best to get the payday loan. However, if it will take between a month to three months to pay back the loan, your best option is the short term loan.
What is the term for a loan in which the interest rate does not change during the entire term of the loan?
a fixed rate loan.
