How does interest work on a loan?

Let’s learn how does interest work on a loan. The most accurate or helpful solution is served by Yahoo! Answers.

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How does the interest rate lock work in a home loan ?

I am a first time home buyer and have a quick question about the interest rate lock. (Chicago IL USA). 1) Lets say I lock a rate of 5% today(30 yr fixed) with a bank for about 60 days. Now if the rate drops below 5% within the 60 days , will I be getting the lower rate as well ? 2) I have put an offer on a short sale property and waiting from the sellers lender to hear about the offer. Now lets say I lock for 60 days for 5% and if I will not hear about my offer within this 60 days, will I be able...

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Hello I am dan peterman by name, the M D of dan loans Venture , i am a Reputable, Legitimate & an...

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Buying a forty thousand dollar truck how much will you pay with ten thousand How much money do i need...

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How does the interest rate lock work in a home loan ?

I am a first time home buyer and have a quick question about the interest rate lock. (Chicago IL USA). 1) Lets say I lock a rate of 5% today(30 yr fixed) with a bank for about 60 days. Now if the rate drops below 5% within the 60 days , will I be getting...

Answer:

You will have to talk to your lender. The idea behind locking your rate is that you will keep a low...

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JohnPau2... at Yahoo! Answers Mark as irrelevant Undo

How does loan interest work?

Say I take out a $10,000 loan at 15% interest. Does that mean I pay 15% of $10,000 each year until the loan is paid off? Or would I pay 15% on the $10,000 the first year, then pay 15% of the remaining balance the next year (say 15% of $8000) and so on...

Answer:

15% a year. So on 10 grand, the interest will be about $1,500 a year. Don't forget you can pay off loans...

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How does student loan interest work?

Hi, How does interest on your student loan work? Currently I owe 31k total and I have 6% interest rate. I'm graduating soon and I plan to pay some now before I graduate. However, I'm confused....Does that mean that even if I pay my $50 monthly minimum...

Answer:

If you have subsidized loans then the interest does not start until the loan goes into payback. If you...

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How does subsidized student loan interest work?

I will be taking out a subsidized loan for the first time, and had a question about the interest. If I take out $2,000 at 5% interest and it is deferred until after graduation, is the interest applied right away or does it start accumulating after graduation...

Answer:

It's not easy to find the best one because each lender has different rules. Maybe you can try to go...

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How does the 6.8% interest work for federal stafford loan?

ok so i'm really confused about the federal stafford loan... say the first year I borrow $1000....the interest would be $68 second year i borrow another $1000...then i owe $2068....and the interest would be $140 second year. third year, borrow another...

Answer:

A Stafford loan works like most other "consumer" loans. You have a monthly payment obligation...

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Can somebody clarify how student loan interest rates work?

Let's say the unsubsidized loan I get is at 7%, does this mean that every month 7% of my principal gets charged on top of it (which of course, would be a HUGE total I would have to pay back)? Also, if I'm approved for "Prime rate +4%," what...

Answer:

The 7% is an APR, or annual percentage rate. Divide it by 12 to get the monthly rate - 0.5833%. This...

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How does a low car loan interest rates really work ?

How much would I have to put down and how much would the interest typically be?

Answer:

it works with rules.

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How exactly do 'interest only' mortgage loans work? When do I pay on the principle of such a loan?

I know APR loans are a bad idea, but how would an interest-only loan work? Would it still be a 30 year note, or do they extend the loan? Would I be able to get a fixed rate with an ...show more

Answer:

The other answers are mostly correct, however no interest only loan product allows for interest only...

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