- Differences of Yield Maintenance vs. Defeasance
Yield maintenance and defeasance are two common methods used to compensate lenders for the loss of interest income on commercial loans. Both terms refer to prepayment penalties designed to preserve the lender’s yield, but there are some differences in how they work. Whether you’re refinancing or prepaying a commercial loan, it’s a good idea to… read more…
- What Is Negative Equity on a Loan?
Negative equity happens when the value of an asset, like a car or home, is less than the remaining balance on the loan used to buy it. This is also known as being “underwater” or “upside down” on a loan. It can make selling or refinancing difficult because you may owe more than the asset’s… read more…
- The Rule of 78 for Loans: What It Is and How to Calculate It
The Rule of 78 can be used by lenders to calculate interest that could significantly impact how much you end up paying over the life of a loan. Unlike the standard amortization method, the Rule of 78 front-loads interest payments, meaning borrowers pay more interest in the early months of the loan term. This can… read more…
- How Securities Based Loans Work
A securities based loan, or margin loan, is line of credit secured by assets in your investment portfolio. These loans typically come with a relatively low interest rate, and can be processed and issued fairly quickly. However, by using your portfolio as collateral, these loans also depend on the value of your underlying assets. And… read more…
- What Is Peer-to-Peer Lending?
Peer-to-peer (P2P) lending is a lending model where individuals or small businesses borrow money directly from individual investors through online platforms. Borrowers apply for loans, undergo credit assessments, and have their loan requests listed on P2P lending platforms. Investors then have the opportunity to fund these loans partially or in full. If you want to… read more…
- How to Calculate Blended Interest Rates on Loans
A blended rate is an averaged interest rate on consumer and personal loans that combines the interest rates of multiple existing loans and any new loans obtained through refinancing. Here’s when it could make sense for you to get a blended rate and when it may not. If you have questions about refinancing a loan,… read more…
- How Private Money Lending Works
Private money lending occurs when a wealthy individual or private organization loans money to a person or company. Private money lending is common in real estate investment. Private money lenders loan money to investors who purchase and, often, renovate properties… read more…
- The Dos and Don’ts of Borrowing Money
Taking on debt is a thorny subject. Signing on an affordable mortgage is one thing. Racking up credit card debt on unnecessary purchases? Quite another. Any time you borrow money, you put your finances at risk. That’s why it’s important to… read more…
- Why You Shouldn’t Co-Sign a Friend’s Loan
Co-signing your friend’s loan might seem like a nice thing to do. But it can put many things in your life at risk, including your finances, your credit score and even your friendship. While it’s possible to co-sign a friend’s loan and never face any negative consequences, it might not be worth it. Check out… read more…
- How to Start Investing in Peer-to-Peer Loans
Back in the day, if you needed a personal loan to start a business or finance a wedding you had to go through a bank. But in recent years, a new option has appeared and transformed the lending industry. Peer-to-peer lending… read more…
- The Best Cities for Boat Owners
Ahoy matey! Thinking about buying a boat? Join the armada. According to the U.S. Coast Guard’s National Recreation Boating Survey, there are nearly 22.3 million recreational boats in the United States. Those vessels range from one-person kayaks up to 200-foot mega-yachts. They can be found adrift on calm lakes in the Midwest or sailing through high… read more…
- The Best Cities for Motorcycle Owners
According to the U.S. Department of Transportation, as of 2012 there were at least 8.4 million registered motorcycles in the United States (a number that has likely risen in the past four years as the economy has strengthened and auto sales have ballooned). That’s a lot of hogs – about one for every 37 people… read more…
- How Much Does the Average Wedding Cost?
While weddings can be magical and exciting for everyone involved, they can also be incredibly expensive. Even if you’ve spent years saving up for your special day, the rapidly mounting costs might even have you considering a loan to finance your… read more…
- Is Using a Personal Loan to Invest a Smart Move?
Building wealth starts with making solid investments, but how do you do that when you don’t have a lot of cash? You could break into your piggy bank but another option is to take out a personal loan. Borrowing money… read more…
- 3 Reasons Your Personal Loan Application Was Denied
Being turned down for a personal loan is a serious blow, especially if you were banking on getting the cash. Understanding why your application was denied in the first place can help you out the next time you try to qualify… read more…
- The Pros and Cons of Unsecured Personal Loans
If you default on a mortgage, the bank could repossess your home to recover part of their money. When it comes to personal loans, however, the only thing securing it in many cases is your own reputation (unless you plan… read more…
- Dos and Don’ts of Using a Personal Loan to Build Credit
Building credit involves taking on some form of debt so you can pay it off and there’s more than one way to do it. Credit cards, for example, offer flexibility and convenience but they tend to come with high-interest rates. Taking… read more…
- The 10 Largest Debt Consolidation Companies
Worried about your credit score? Debt got you down? Technically you don’t have to enlist the service of a debt relief, debt consolidation or debt settlement company. You can go to a non-profit credit counseling organization instead. If you’re willing… read more…
- What Personal Grants Are and How to Apply
What do you do when you personally need money but don’t want to take on debt? One answer is to seek a personal grant. The government offers grants to help Americans pay for certain classes of expenses and to make it… read more…
- What Is a Secured Loan?
A secured loan is a loan that is backed by collateral. A borrower can secure a personal loan with an asset like a savings account, a car or home equity. If you need money to help you pay off a debt or… read more…
- What Is Unsecured Debt?
Month after month, you may struggle to keep up with payments on all kinds of loans, from credit card debt to medical bills. Most forms of debt require you to pay back borrowed money with interest, but not all debt is… read more…
- How Do Payday Loans Work?
Many Americans have income that fluctuates from week to week. When incomes are unsteady, any unexpected expense can leave you coming up short. If you don’t have a fully funded emergency fund, you may find yourself looking around for loans… read more…
- How to Write a Personal Loan Agreement
Negotiating a loan with a friend or family member can be a great alternative to high-interest forms of consumer credit. Formalizing that loan in a personal loan agreement isn’t unfriendly – it’s the best way to keep your loan terms… read more…
- 3 Personal Loan Mistakes You Can’t Afford to Make
If you need cash to bankroll a large purchase, you can’t wait to save up for it and you’re not interested in paying credit card interest, a visit to your bank or credit union can be an alternative. Personal loans tend to offer lower rates compared to credit cards and the repayment terms are fixed,… read more…
- Pros and Cons of Lending Money to Family Members
Mixing money and family can quickly become very tricky. The reality, though, is that many of us will go through tough financial times—whether we’re just starting out on our own, we recently lost a job or we had some other… read more…