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What else can I help you with?
Is an interest only loan a good idea?
The best type of loan that one can get is an interest only loan if they are not able to make large payments for a period of time. However, if one only pays the interest on the loan, the principal itself will never decrease leaving you in debt longer.
What is an amortizing loan and how does it differ from other types of loans?
An amortizing loan is a type of loan where the borrower makes regular payments that include both the principal and interest. Over time, the amount of principal paid off increases, while the interest decreases. This is different from other types of loans, like interest-only loans, where the borrower only pays interest for a certain period before starting to pay off the principal.
What is money paid only on the principal?
Money paid only on the principal refers to payments made towards the original amount borrowed, excluding any interest or fees. This type of payment is often seen in loans where the borrower pays back just the loan amount without additional interest charges, typically during a specific repayment period. It can help borrowers reduce their debt more quickly, as they are directly decreasing the principal balance. However, in most loan agreements, payments usually include both principal and interest.
How do interest-only loans work?
An interest only loan is one of the options for people looking for a mortgage to buy their own home. This type of loan means the borrower usually pays a lower monthly amount and it's useful for someone that might have a variable monthly income. The principal, or amount initially borrowed still has to be paid back at the end of the loan period however. Interest is paid as an agreed percentage of the principal (the amount borrowed).
What type of annuity pays you a flat interest rate?
A tax deferred fixed annuity pays a flat interest rate.
Which type of interest is calculated by adding the interest earnd to the principal?
compound
This type of interest is calculated by adding the interest earned to the principal.?
compound
Which type of interest is calculated by adding the interest earned to the principal?
compound... yes it is compound interest.
What type of interest is calculated by adding the interest earned to the principal during specific and agreed intervals?
Compound
Which type of interest is added to the principal at the end of the specified time frame?
both
Which type of interest is calculated by adding the interest earned to the principal during specific and agreed upon intervals?
comopound
What type of interest is calculated by adding the interest earned to the principal during specific and agreed upon intervals?
Compound
