Are there cons to buying a new car without taking out a loan?
I am thinking of buying a new car in the next year or two (because it looks like repairs will soon cost more than the trade in value of my car). Because I hope to have a condo by then, I don’t want to have both a mortgage and a car loan.
I would be able to pay for the car without taking out a loan, but I have several questions:
1.Is there any reason this would not be a good idea?
2. Would they need to do a credit check still, or special background checks?
3. Would it be better to just put a large downpayment and get
a smaller loan (which I could try to pay off sooner)?
Of course I would make sure to have enough for emergencies afterwards.
Any advice or suggestions would be appreciated. Thanks.
I’ll answer your questions in the order posed:
1. If you can get a better return on an investment than the interest rate on the loan, take out the loan and invest the money you would have spent on the car.
2. Nope! You got money, you drive away.
3. That’s a possible option, especially if the investment option in #1 is not as predictable as you’d like. And you may be able to get a lower rate with a larger down payment, further leveraging your investment opportunity.
You make an extremely valid point about keeping enough on the side for emergencies. Just having enough in the bank or other liquid accounts to be able to say, “Take this job and shove it!” without worrying about the repercussions is TRUE FREEDOM! Factor that into your decision as well.
Buying Tip — from an old car salesman: Grind on price but let them THINK you’re going to finance it. They’ll take back whatever they give on price on the finance contract — it’s all money to them and they really don’t care where it is in the deal as long as they THINK it’s there. Sign the contract at the inflated loan rate. When you come in to take delivery, hand them a cashiers check for payment in full, or just wait until the first payment is due and pay it off all at once if you want to avoid the fireworks. They’ll be furious, but there’s NOTHING that they can do about it. This trick is especially profitable if they offer a cash incentive for financing through the manufacturer’s captive finance arm. I saved an extra $1,000 on the car I bought last year this way.
I was just wondering if a person can take out a student loan and use that money to pay off a second mortgage.?
I have found a place that will cut me a check for 40 grand and that would be enough to pay my second off, would that be possible? do I have to show proof that I used the money for education? please help. thanks
I’m using my loan to pay off a car loan (my school is a direct lender). I think as long as you have proof that you’re actually IN school, they won’t care how you spend it (you spending their $10k on a yacht just means you need to pay $10k for your semester out of pocket, so it really doesn’t matter…see what I’m saying?)
Can underwriters check fake 1099?
I applied for a loan at a bank and they told me based on my credit I qualify for a $10,000 loan. They asked me how much I make and I told them double what I really make. I am approved but now they want proof of income. Can I submit fake 1099? It’s a small loan not a mortgage. Can underwriters check if it’s legit? I know it’s not ethical but my credit is good and I can pay the monthly installments. Please give serious answers I do not need a lecture on ethics. Thanks
They very likely will want to see either a completed tax return in its entirety, after filing, or pay stubs, and every once in a while banks do call and check up on employment and earnings if they are suspicious. I don’t really see a way you could make this happen, I would call the bank and tell them you had a relative loan you the money and get out of it. You would have to do some serious document forging to give them the proof they want, and even then they may find you out. I once stated that my income was higher than it was to get a choice apartment and the broker would only accept a copy of a filed tax return so I ended up calling to say I had found a new place.
How to choose a mortgage company? as the rate going down I’m checking the option to refinance my house?
I got offers from various loaning companies, which things I should check in order to know the following:
1. If this is a good company to work with
2. If it is good for me to move my mortgage to them (other than closing costs and rate)
I got good rates from one of these companies (5.99%) and it sounds like better deal than the one I have now, but I’m wondering if there are any hidden costs or if there’s anything I should be checking about these companies
The rates are at 6.25% for 30yr fixed…you can probably get it at 6.125% with the right company.
Also depends on your LTV….credit score..loan amount…etc
there are a lot of companies that DONT CHARGE YOU closing costs…but Nothing in life is for free…so you will see their rates at 6.75% or 7%
edit* 5.99% sounds like an ARM…..30yr fixed is higher than that
Can my father transfer his home loan to me?
We used my dads credit to purchase a house for us. He is solely on both the title and the loan, however from the beginning I’ve been paying the mortgage from my personal checking account. He has since transfer the title to our name. Since I’ve shown responsibility of keeping up to date on the mortgage for a little over a year is it possible to transfer to loan to my name and remove his? We are using GMAC.
Do NOT do a quit claim deed, this is the flimiest way to convey title, and is actually intended as a way to correct title, not convey. Terrible advise, don’t do it.
I don’t know how dad got the title transferred to your name with an outstanding mortgage, but OK.
Unless the loan is assumable, which most are not, you cannot get this loan transferred into your name. You are going to have to obtain your own loan. Since your mortgage payments won’t be reflected on your credit report, it’ll be on your dad’s, I hope your credit has improved to the point where you do qualify for a mortgage.
In the future, it would be wise to pay legal counsel up front on the best way to do this without making more work for yourself (and expense, since dad paid closing costs, now you are too) and possibly making a big mess that could backfire.
Powered by Yahoo! Answers