So 8-8.5% is standard?
Cool...



No, no...I didn't say that.

Prime is 5.50 and a consumer loan is 12.80, since I don't know what the loan is for - ei., can it be collateralized or the payback period - I suggested 8 to 8.50. In other words, you can get as low as 5.5 on one particular loan or as high as 12.80 on another, but on average you'll be charged 8 to 8.5 percent.

Nikki Kelly daughter said in her Punch column that there is no such thing as a fixed rate mortgage, is this true, and if yes, how is it that the bank can trap me with an 8.5% sales pitch, and when I am comfortably in her embrace, jack the rates up on me?


I don't know what this Kelly person is talking about, but, in a way she is right. Not in a way that ought to concern you unless you screw up.

As you know, your loan payments are made up of two things, interest and principle. Your payments amortize a predetermined amount over the life of the loan which we can call the future value. The fixed rate is what they use to determine the amount to amortize or the future value, which is usually the prevailing rate of interest at the time you got the loan. So the amount you repay or the future value is fixed. What changes is how much of your payment per month is interest and how much is principal. If you have a variable rate of interest, then what changes is the future value. You don't ever want the future value to change, even though it may go down in some cases.

I don't know what this Kelly person is talking about, but, in a way she is right. Not in a way that ought to concern you unless you screw up.
As you know, your loan payments are made up of two things, interest and principle. Your payments amortize a predetermined amount over the life of the loan which we can call the future value. The fixed rate is what they use to determine the amount to amortize or the future value, which is usually the prevailing rate of interest at the time you got the loan. So the amount you repay or the future value is fixed. What changes is how much of your payment per month is interest and how much is principal. If you have a variable rate of interest, then what changes is the future value. You don't ever want the future value to change, even though it may go down in some cases.



That is good to know, wrt the future value..why then are the banks unwilling to give fixed rate Mortgages in The Bahamas if they are going to get their 70% markup no matter what? There is a scam in there somewhere that needs to be discovered, because I do not see what difference it makes if 20% of your payment is interest or only 6% in the grand scheme.

Depends on the length of time you're borrowing. If you're borrowing 1,000, its safe to assume that you're expected to pay it back in a year or two. I think the going rate in Nassau is about 8 to 8.5 - so if you borrow for a year you'll end up paying back 1085 to 1,177 for two years. A 20,000 loan will probably be a 5 to 6 year deal. If its 5 years you'll probably pay 22,050 to 26,801 for six years assuming its a bullet.


Actually, a small consumer loan between 1,000 to about 5,000 can expect an interest rate of around 13-19 %. You will get about a year to repay the smaller amounts and up to maybe 3 years to repay 5,000.

New car loans have interest rate of about 9-10 percent. Mortgages have interest rate between 8-11 percent. The rates can be higher or lower depending on the prime rate which is usually controlled by Central Bank.

Actually, a small consumer loan between 1,000 to about 5,000 can expect an interest rate of around 13-19 %. You will get about a year to repay the smaller amounts and up to maybe 3 years to repay 5,000.
New car loans have interest rate of about 9-10 percent. Mortgages have interest rate between 8-11 percent. The rates can be higher or lower depending on the prime rate which is usually controlled by Central Bank.



Apart from sickness, why would anyone get a loan for $1000!! What other sensible reason would one NEED that small amount of money for that cannot wait.

This is one of the reasons why we are in such debt. I have a friend who I have known for about 15 years. She is always broke. i gatta duck her all the time and not take her phone calls. Yet she has 'friends' in all the banks who she say she does just call on the phone then go pick up the money. :jawdroop:

$1000 is quick money. Some persons need cash quickly and often times can repay it within a couple of months. It may not be the smartest move but hey. Some persons on the other hand start off with a small amount (good intentions) and before they know it they are habitually rewriting the same loan for larger amounts and the cycle never ends.

Apart from sickness, why would anyone get a loan for $1000!! What other sensible reason would one NEED that small amount of money for that cannot wait.
This is one of the reasons why we are in such debt. I have a friend who I have known for about 15 years. She is always broke. i gatta duck her all the time and not take her phone calls. Yet she has 'friends' in all the banks who she say she does just call on the phone then go pick up the money. :jawdroop:


Just wanted to know in general what is what...ya know!
I remember when I first started workin, I did hustle one a dem commonwealth bank loans for about $1,500...LOL...
Working for about $175.00 a week, and payin for college, tings did get a lil ruff and I did need to pay for my last 3 courses, so I could get on wit ma life!

Dem lil loans does help bhey...
:voodoo:

Just wanted to know in general what is what...ya know!
I remember when I first started workin, I did hustle one a dem commonwealth bank loans for about $1,500...LOL...
Working for about $175.00 a week, and payin for college, tings did get a lil ruff and I did need to pay for my last 3 courses, so I could get on wit ma life!
Dem lil loans does help bhey...
:voodoo:



At least you got yours for a good reason... to further yourself. Some get those loans to go on vacation this year and next year they still paying for it.

When I first started working, my mother PUT, not ask me, in a $20 assue. First time I got the last draw, by the third and fourth time, I was getting the draws the coincided with my vacation or 'major' bills.

Actually, a small consumer loan between 1,000 to about 5,000 can expect an interest rate of around 13-19 %. You will get about a year to repay the smaller amounts and up to maybe 3 years to repay 5,000.
New car loans have interest rate of about 9-10 percent. Mortgages have interest rate between 8-11 percent. The rates can be higher or lower depending on the prime rate which is usually controlled by Central Bank.


That's why I said:

Prime is 5.50 and a consumer loan is 12.80, since I don't know what the loan is for - ei., can it be collateralized or the payback period - I suggested 8 to 8.50. In other words, you can get as low as 5.5 on one particular loan or as high as 12.80 on another, but on average you'll be charged 8 to 8.5 percent.

A car loan is collateralized. So are mortgages. Mortgages have greater interest rate risks than car loans. But with out no specifics regarding the loan, collateral, credit, or capacity to pay, there is no way to give a specific rate. So its better to give an average, which is what I attempted to do.

Tingum,

are you listening to to Jeff Lloyd today?

He has a Kenyan economist as guest today.


Good stuff.

Tingum,
are you listening to to Jeff Lloyd today?
He has a Kenyan economist as guest today.
Good stuff.


I does get a kick out of some of these callers!!!
LOL....
:voodoo:

But, I said it before, we don't have anything to trade, so we need to either find a "comparative advantage" or get out of the speculation game, until we "sure up the state" so that our domestic businessmen and women, can compete.

Depends on the length of time you're borrowing. If you're borrowing 1,000, its safe to assume that you're expected to pay it back in a year or two. I think the going rate in Nassau is about 8 to 8.5 - so if you borrow for a year you'll end up paying back 1085 to 1,177 for two years. A 20,000 loan will probably be a 5 to 6 year deal. If its 5 years you'll probably pay 22,050 to 26,801 for six years assuming its a bullet.

So what about a $150,000,00 loan? I want to know how much you will pay back?

Tingum,
are you listening to to Jeff Lloyd today?
He has a Kenyan economist as guest today.
Good stuff.

no, only yall that dont live here is listen to that radio thing :D

So what about a $150,000,00 loan? I want to know how much you will pay back?


How many years??

By the way, its better to pay back over a shorter period of time than a longer period of time.

If its 30 years or 360 months then you'll pay 1,316 a month with zero down and 10 percent APR. But you'll pay back 473,760.

If its 20 years or 240 months then you'll pay 1,447 a month. You'll pay back 347,280.

If its 15 years or 180 months then you'll pay 1,611 a month. You'll repay 289,980.