Loans With E G Real Estate As Security

[jpbago]

 

I am not sure if it is so with all loans but with car loans, there is no reduction in interest if you pay the loan off early. If you get a 4 year loan and pay it off in 2 years, you have to pay the full amount as if the loan went for 4 years.

Well. It's common with stupidity/much missing needed knowledge in business in Phils. BUT perhaps many are that stupid paying back in advance WITHOUT incentive to do so. OR perhaps they think it's to big risk they waste the money if they keep them   :)   

IF paying in advance without incentive, then they even pay MORE than they would do if they wait (because of the inflation.)

 

If the lenders instead would give e g half of the interest as incentive, then EVERYONE would WINN by the lenders could lend out same money years earlier...

 

 

When a loan is made, the interest is calculated for the term of the loan. It is common here to spend tomorrow's money so they can not reduce the total cost if you pay it off early. Or maybe they cannot do the re-calculation. My daughter wrote her math exam yesterday at 1st year private college. 30% was actual exam but for the other 70%, the professor wrote an equation on the board and told them to copy it as he did not understand it either. The smart professors are working as housekeepers in Hong Kong. That is why many fail the board exams. They have not been taught.

[Thomas]

When a loan is made, the interest is calculated for the term of the loan. It is common here to spend tomorrow's money so they can not reduce the total cost if you pay it off early. Or maybe they cannot do the re-calculation.

  But loans and interests are normaly paid bit by bit, so lenders can't have spend the money yet  :)   They get MORE cash AND profit if they get the money back faster.

Yes, I suppouse they don't know such re.calculation, BUT they don't need to recalculate by a formula, they only need to understand by logic thinking, they earn MORE if they give a suiting level incentive so they get their money back faster.

The smart professors are working as housekeepers in Hong Kong. That is why many fail the board exams. They have not been taught.

Yes, sure. In SOME cases intellect level can be lower by missing nutricion as kids, but the other Filipins are similar smart as us foreigners, perhaps even smarter "Street smart" type, because most of them have to be to survive. The catholic church mess up some of the logic thinking though.

(E g one LOW educated Filipina I know, managed to figuere out the corect answer in a rather complicated mathematic test, close to corect direct and I just gave her a hint, which part she had missed to think of, when she had missed to think of ONE of the steps.)

[jpbago]

But loans and interests are normaly paid bit by bit, so lenders can't have spend the money yet 

 

They borrow from accounts receivable as collateral.

 

My sister in law and niece are in a tight spot now as they both borrowed money on the promise of the other niece (OFW) sending some money (a certain amount). When the money came, it was not enough as was promised and they had already lost the borrowed money on the rooster to the left that lost the fight. The OFW now will not answer their calls. A common situation of tomorrow's money.

[billygoat993]

Just to share my experience we pai it earlier than the contract price Bank is RCBC they gave us rebates. Housing loan if you pay early u will have some sort of penalty.. No discount. Its better use the money somewhere lol..

[Thomas]

 

But loans and interests are normaly paid bit by bit, so lenders can't have spend the money yet 

 

They borrow from accounts receivable as collateral.

But I'n talking about the lender, not the borrower. Or do you mean it's common that lenders take loan with the loan they gave as collateral?  

My sister in law and niece are in a tight spot now as they both borrowed money on the promise of the other niece (OFW) sending some money (a certain amount). When the money came, it was not enough as was promised and they had already lost the borrowed money on the rooster to the left that lost the fight. The OFW now will not answer their calls. A common situation of tomorrow's money.

I thought loans are in opposite direction  :)   Or do you mean they gave loan so cousin could afford the costs to START working OFW?

 

Just to share my experience we pai it earlier than the contract price Bank is RCBC they gave us rebates. Housing loan if you pay early u will have some sort of penalty.. No discount. Its better use the money somewhere lol..

The house loan - Is it

/You must pay whole loan and interest PLUS penalty?

/Or whole loan, interest until NOW plus a penalty, which is PART of what future interest would have been if loan it whole time? (This second is common in western countries too, because it mess up their planning some, so they want to get some pay for that.)

[billygoat993]

Thomas i will verify that cause my wife availed of yearly interest I think bank said we will pay 150 k plus amount of loan. But pls don't hold me for my word i want to verify and give accurate answer.

[Thomas]

Thomas i will verify that cause my wife availed of yearly interest I think bank said we will pay 150 k plus amount of loan. But pls don't hold me for my word i want to verify and give accurate answer.

Yes. But how much was 150k compared to how much you would have paid if keeping the loan until end?

(It's normal in our home countries to have to pay PART of the interest for the remaining time, if pay back earlier.)

[jpbago]

Or do you mean it's common that lenders take loan with the loan they gave as collateral? 

 

Yes. They borrow using money coming in as collateral.

 

"I thought loans are in opposite direction"    They borrowed from a third party. The niece (OFW) did not send the promised amount of that they borrowed.

[Thomas]

"I thought loans are in opposite direction" They borrowed from a third party. The niece (OFW) did not send the promised amount of that they borrowed.

BEFORE the OFW went abroad?

If before - Why didn't the OFW worker borrowed in her/his own name?

If after - Why didn't the OFW borrow abroad where interests are much lower?

[jpbago]

 

"I thought loans are in opposite direction" They borrowed from a third party. The niece (OFW) did not send the promised amount of that they borrowed.

BEFORE the OFW went abroad?

If before - Why didn't the OFW worker borrowed in her/his own name?

If after - Why didn't the OFW borrow abroad where interests are much lower?

 

Tom, Tom, Tom, let us speak English. It started when I said that they spend tomorrow's money. The one niece, an OFW in Dubai, sends money home to her sister and mother who do nothing but sit around and wait for this money from heaven. They both could be working as OFWs too but they like the lazy gambling life style here. The sister and mother always borrow from someone else before the OFW sends the allotment. When the allotment is not enough to cover the loan and they don't have food/utilities money for a month, then they are in a tight spot. It happens about 12 times a year. They learn nothing from their mistakes. They think budget is a bird.