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Should you retire a loan towards the end of its term or much before it?
Wiki User
∙ 18y ago
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.
Wiki User
∙ 18y ago
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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.
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.
What information should I get before applying for an equity loan?
Before applying for an equity loan, you should find out the interest rate of the laon and the specific terms of the loan. You can get more info at www.en.wikipedia.org/wiki/Equity_loan
Should you pay off a default loan before or after you apply for a Mortgage?
You should pay off your default loan before because you may not qualify for a mortgage loan because you already owe money.
What is money down and is it included in the loan amount?
money down is the down payment towards a loan. It is deducted from the total debt, or principle before interest is applied.
What ratios should be considered before giving loan?
nkb
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For a better chance at getting the vehicle loan, increase your credit after the vehicle loan. Increasing your credit before may reduce the your vehicle loan amount.
What percentage of your income should go towards a vehicle loan?
less than 20% less than 20%
Should you close a credit card before getting a car loan?
NO
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 recommended that you use a loan payment interest calculator before taking out a loan?
You can use a loan payment interest calculator before taking out a loan but there are many factors that affect the outcome. Because of this, it should be used for reference purposes only.
Is it viable to retire a loan with a repayment penalty?
Only the borrower can answer that question.
