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Sep. 12th, 2014 09:53 am![[personal profile]](https://www.dreamwidth.org/img/silk/identity/user.png){kind=small}
the_rckDrat. I thought this might happen-- Scott does all the financial stuff, so I don't have ready access to the information the loan company needs in order to process our loan application. I don't know our monthly mortgage payment. I don't know the total of my monthly disability (Social Security and a payment from my former employer). I probably could find that information if I dig through the paperwork Scott has saved or if I can find our financial records on Scott's laptop. If something happens to Scott, I'd really be screwed on the financial front. I don't know where anything is or how much we can afford to spend on what.
Scott wants to do a twenty-four month loan. He says the payment is at the extreme edge of what we can afford, but he's reluctant to commit to a longer term loan. I'd be tempted to take the thirty-six month loan (about $60 less a month) and just try to pay it off early. That we could do on a month by month basis, depending on how much wiggle room we had in the budget.
The way the loan is structured, they call it a zero interest loan, but they tack on a chunk of money as a 'financing fee.' The longer the term, the higher the fee. I'm not sure what interest rate the fee actually adds up to over the term of the loan. The fee is calculated as a percentage of the principal, but it's not compounded. It's just a flat fee.
The loan company wants to talk to Scott anyway. It makes sense that they wouldn't want to put his name on the loan without confirming that he's willing (I'm a little bit startled that we can do this over the phone. Not that we could do it any other way-- They're somewhere in the mountain time zone). I thought about trying to qualify on my own, but I suspect that my income is insufficient to qualify on my own.
Scott wants to do a twenty-four month loan. He says the payment is at the extreme edge of what we can afford, but he's reluctant to commit to a longer term loan. I'd be tempted to take the thirty-six month loan (about $60 less a month) and just try to pay it off early. That we could do on a month by month basis, depending on how much wiggle room we had in the budget.
The way the loan is structured, they call it a zero interest loan, but they tack on a chunk of money as a 'financing fee.' The longer the term, the higher the fee. I'm not sure what interest rate the fee actually adds up to over the term of the loan. The fee is calculated as a percentage of the principal, but it's not compounded. It's just a flat fee.
The loan company wants to talk to Scott anyway. It makes sense that they wouldn't want to put his name on the loan without confirming that he's willing (I'm a little bit startled that we can do this over the phone. Not that we could do it any other way-- They're somewhere in the mountain time zone). I thought about trying to qualify on my own, but I suspect that my income is insufficient to qualify on my own.
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Date: 2014-09-12 11:18 pm (UTC)Also, ugh. Getting a "financing fee" up front for the interest means you can't save any money by paying it off early. That bites. Is it worth seeing whether a bank/credit union can float you a more friendly loan?
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Date: 2014-09-15 01:53 pm (UTC)I'll suggest 1Password to Scott. I think he doesn't like to think about what might happen if he weren't around. I haven't been able to persuade him that $100,000 in life insurance is inadequate. That would only see me and Cordelia through two, maybe three, years without Scott. Of course, I should talk. I've only got about $25,000 in life insurance.
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Date: 2014-09-12 06:10 pm (UTC)no subject
Date: 2014-09-15 01:55 pm (UTC)no subject
Date: 2014-09-12 08:59 pm (UTC)no subject
Date: 2014-09-15 01:56 pm (UTC)We're going to need a new car in not too long. Hopefully, we can nurse the current car along for a few more years. It's a year older than Cordelia.