Banks and loans
Oct. 20th, 2006 03:17 pm![[personal profile]](https://www.dreamwidth.org/img/silk/identity/user.png){kind=small}
sobriqueJust been to the bank, to say 'gimmee money'.
Not with a shotgun, the police get upset.
They seemed positvely happy to hand me _vast_ amounts of cash. Not that I took any, but it does 'clarify' a bit where I am in terms of options for car replacements.
One thing I couldn't quite figure out though. Loans tend to have 'tiered' interest rates.
E.g. <1k 10% 5k - 10k 9%, 10k-20k 8% etc.
So... surely what you should really be looking to do is take out a loan at the highest interest tier, and then immediately repay everything you don't need, thus leaving you with the right amount of cash and a lower puddle of interest.
Or have I missed something? I don't recall any 'early repayment' penalty on my most recent loan that I repayed a year early. I suppose the repayments would be defined assuming you had the full rate to repay over the full term, but then you could just go for a 7 year loan, and repay 4-5 years worth all at once. (Obviously, this is subject to you being able to cope with whatever baseline repayments would be due on the sum borrowed over the maximum term available)
Not with a shotgun, the police get upset.
They seemed positvely happy to hand me _vast_ amounts of cash. Not that I took any, but it does 'clarify' a bit where I am in terms of options for car replacements.
One thing I couldn't quite figure out though. Loans tend to have 'tiered' interest rates.
E.g. <1k 10% 5k - 10k 9%, 10k-20k 8% etc.
So... surely what you should really be looking to do is take out a loan at the highest interest tier, and then immediately repay everything you don't need, thus leaving you with the right amount of cash and a lower puddle of interest.
Or have I missed something? I don't recall any 'early repayment' penalty on my most recent loan that I repayed a year early. I suppose the repayments would be defined assuming you had the full rate to repay over the full term, but then you could just go for a 7 year loan, and repay 4-5 years worth all at once. (Obviously, this is subject to you being able to cope with whatever baseline repayments would be due on the sum borrowed over the maximum term available)
