/biz/ - Business & Finance

[Anonymous No.16257797]

Can someone explain to a brainlet how "refinancing" student loans somehow reduces or eliminates your debt? Like who pays the difference in what you owe, the government or something? Some kind of special grant?

Lately I've been CONSTANTLY seeing these refinance student loan commercials on TV, like at least 2-3 every single commercial break. Reminds me of 2006 with all those fucktons of mortgage commercials

[Anonymous No.16257804]

>>16257797
another lender competes for your loan at a lower rate, buys you out and then you owe them instead

[Anonymous No.16257848]

>>16257804
How is the new lender making money then, if they need to pay the original lender and then make you pay at a lower rate than the original lender was using?

[Anonymous No.16257910]

>>16257848
They pay the outstanding debt at once

[Anonymous No.16257959]

>>16257848
>you owe $40,000 plus 9% interest annually to Company A
>you now have a job and are a lower risk of defaulting
>Company B offers the full $40,000 to Company A
>Now you owe Company B $40,000 plus 6% interest annually

[Anonymous No.16258021]

>>16257910
>>16257959
Hmm, got it thanks. But why would the original company take the $40k versus $60k+ that they'd eventually get from you? Are they running short on money and need capital/liquidity now?

[Anonymous No.16258044]

>>16258021
Money now > Money later. If they already gave you the loan and were already getting interest payments for months or years, and then someone offers them the FULL remaining principle back, then they guarantee 100% that they profited off you. They can log that in the books and loan that money out to someone else ASAP.

[Anonymous No.16258048]

>>16258021
Cash on hand allows it to be reinvested into something with a higher rate of return than the $15k loan which you (a nigger) may or may not pay.

[Anonymous No.16258059]

>>16258021
Risk of defaulting, public backlash, better investment prospects which require immediate funds, there are probably hundreds of reasons

[Anonymous No.16258060]

>>16258021
>>16258044
For the record my first 4-5 words were based on who is dealing with who.

>for the Company
more money eventually > money now. That's why the loan business even exists.
>for the Sales guy
Money now > Money later. That's how he can make his sales sheet look better for this quarter.

[Anonymous No.16258077]

>>16257797
In my country quick loans, sms loans or whatever you call quick loans up to 10k has got really popular, but people usually are trapped into not looking at administrative fees etc, they inflate the whole, let's say 5k loan, into 9-10k total sum you have to return in short time.
Refinancing came like last year, it's when i started hearing about it on radio or see adds in buss stations. Today I heard at least 20 time on a radio. They are aggressive, but knowing how stupid people are, there is a demand, stupid people can't return those quick loans, essentially they have bad credit rating and can't function as normal consuming sheeps, nobody allows them to take another loan, or buy items/good on credit. (credit rating doesn't exist in our country, but it actually does exist, but sheeps don't know about it)
I believe they originally reduce your monthly pay, but extends the period and few % here and there then a original lender.
There is no good deeds in banking system, nobody gives free money. I bet 100%, sheeps pay even more cash for refinancing at the end of credit/loan return. Knowing our stupid sheeps they sign another dept slip with hidden fees.

[Anonymous No.16258078]

>>16258044
>>16258048
I guess that makes sense, but how did you know I'm black

[Anonymous No.16258082]

>>16258021
Student loans generally allow prepayment with no penalty, so the original lender doesn't have a choice.

[Anonymous No.16258109]

>>16258082
>allow prepayment with no penalty
"allow"? Some loans don't allow you or penalize you for paying them off early? What the fuck

[Anonymous No.16258154]

>>16257848
Are you really this retarded. They pay it off immediately then the interest that you’re paying goes to them now.

[Anonymous No.16258394]

>>16258109
You're not allowing the creditor to collect the interest from you, so you're taking money out of their pockets. It makes sense but I've never heard of it either

[Anonymous No.16258548]

>>16258021
>Facial Hair Review
>jon– 4/10: I'm not a big goatee fan and the strip of grey is ugly but it's decent enough.
>pete– 1/10: What the fuck is this thing? It looks like a fucking ferret has taken up residence below his mouth. Shave it off entirely or grow a full beard. I literally hate looking at this.

[Anonymous No.16258769]

>>16258394
So if some other lending company comes along and buys your loan out early that's fine. But if you buy your own loan out (repay in full) suddenly that's bad? Sounds like jew mischief

[Anonymous No.16259243]

>>16257797
Invest in uos, within a couple of years you'll be able to retire.

Esports and gaming is becoming the next big hit

[Anonymous No.16259933]

>>16258769
that pic was drawn by a jew himself

so much of your most viral memes aren't really as grassroots as you think

[Anonymous No.16259983]

>>16258109
Not with things like student loans or residential mortgages, but with commercial real estate loans, prepayment penalties are not uncommon. The bank doesn't want to go through all the effort and then have you just pay all the money back after a year.

[Anonymous No.16260040]

>>16258394
Prepayment penalties are almost always for mortgages, not student loans, or car loans, or personal loans, and it's usually for a time frame, like 6 months. It's a way for the lender to lock in some profit after the costs of the deal are paid off, and prohibits shady flipping. And, they're getting more rare since house flipping has gotten more common. The last time I saw one, was for a condo sale, because the HOA wanted stability for the building, they wanted the buyer to commit to actually living there for a while.
No student loans, federal or private, have pre-payment penalties. Never heard of one on a car, either.

[Anonymous No.16260049]

>>16259933