How to Stop Being Broke

How to Stop Being Broke.

If you're sick of being broke, it's time to take control of your finances! Whether you need to work on your spending habits, learn how to save, or find ways to earn more money, you can find a way to stop being broke. Follow these steps to start working towards financial freedom and better peace of mind.

Part 1 Getting into the Right Mindset.
1. Set goals. If you want to change your financial situation, you need to get specific about want you want to accomplish. Think about exactly what you want your finances to look like and what you can do to achieve those goals.
Setting short-term goals in addition to long-term goals can help keep you motivated by providing you with a sense of accomplishment.
Create a budget for non-essential items and hold yourself accountable for it each month. If you go over-budget one month, tell yourself that your budget for the next month is reduced as a result.
2. Stop comparing yourself to others. If you're spending beyond your means because you feel that you need to keep up with your friends or show others that you can afford a certain lifestyle, you're not doing yourself any favors. Stop worrying about what others can afford and think about how you can live within your means.
Stop equating your self-worth with your ability to buy things. This kind of thinking will make you extremely unhappy in the long run and will probably get you stuck in debt forever.
3. Track your expenses. To understand exactly where all your money is going, keep careful track of every dollar you spend. You can do this with a pen and paper or electronically if you use a card for everything, but make sure to account for everything. This simple habit will help you spend more wisely.
Try categorizing your expenses and adding them up on a monthly basis. For example, you could create categories for food, housing, transportation, utilities, insurance, entertainment, and clothing. Then calculate what percentage of your income you are spending on each category. You might realize that your expenses in some of these categories are way too high.
To understand how much you can afford to spend each day, subtract your fixed expenses from your monthly income and divide the remaining amount by 31.
4. Make a plan for getting out of debt. If you are broke because you have credit card debt, a car payment, or student loans, think about what you can do to pay off these debts faster.
Making even a few extra payments each year can help you pay off your debts much faster.
5. Start saving. This may seem impossible if you are always broke, but planning for the future will help you get out of this cycle. Start small by just putting $50 in an emergency fund each month.
Don't forget to save for retirement! Take advantage of the 401k offerings at your company or open an IRA account.

Part 2 Avoiding Money Traps.
1. Avoid lending to others. While you may want to help out your loved ones who are in need, you really shouldn't be lending money if you can't afford to pay your own bills.
2. Avoid payday loans. While they may seem like a good solution if you're strapped for cash, the interest rates are ridiculously high, so they will only get you further into debt.
3. Understand how much it will really cost. Before you take out any kind of loan or finance any purchase, be sure to calculate what your monthly payments will be, how long it will take you to repay the debt, and how much you will be paying in interest.
In some cases, paying interest may be worth it. For example, most people cannot afford to purchase a house without taking out a mortgage, but depending on the price of the house and the average cost of rent in your area, you might still be saving a significant amount of money by choosing to buy with a mortgage instead of renting.
Be especially wary of high interest rates for depreciating assets like vehicles. If you decide to sell your vehicle after you have owned it for several years, it may be worth less than what you owe on it. This can also happen with real estate when the market conditions are poor.
4. Avoid impulse buys. If you always have a plan for what you will buy, you will have a much easier time managing your finances.
If you have a hard time controlling your purchases when you go to the mall, try to avoid going to the mall at all.
Write out a list when you go shopping so you will always know exactly what you need to buy.
5. Use credit cards wisely. If you have a harder time keeping track of your expenses and sticking to your budget when you use a credit card, stop using it.
Paying with cash instead of a credit card will allow you to visualize how much of your available funds you are spending on a given purchase.
If you are able to stick to your budget when using a credit card, look for one that has no annual fee and will reward you with cash back or other incentives. Just make sure you always pay your bill on time or these incentives will not be worth the price you are paying in interest.

Part 3 Spending Less.
1. Assess your daily or weekly spending habits. Once you have a solid grasp on what you are spending your money on, you can start cutting out expensive habits.
2. Buy used items. You can save on everything from your next car to furnishings for your home by buying gently used items.
You can sometimes find really great clothes that have barely been worn at thrift shops for a fraction of the price.
3. Look for monthly expenses that can be cut. If you pay for monthly memberships or subscriptions, carefully assess how much they cost, how much you use them, and whether you could give them up.
Make sure you're not paying for services that you never use. For example, if you have premium cable channels that you never watch, you can cancel them without feeling like you are making any sacrifices. The same goes for your cell phone bill if you are paying for more data than you ever use.
4. Compare items or brands when shopping. If you're on a tight budget, you want to make sure you're always getting the best deal on absolutely everything. Take some time to compare prices for items you purchase regularly and for large purchases.
If you've had the same auto insurance carrier or cable company for a long time, there might be better deals out there, so be sure to comparison shop regularly.
Shopping for necessities online can be cheaper in some instances, but make sure you take shipping charges into account.
Use coupons to save some extra cash. Keep in mind that many retailers accept competitors' coupons.
5. Ask for a better deal. You can always ask your service providers for better deals, especially if you've been a loyal customer. The worst they can say is no.
Try this with your cable and internet providers, insurance companies, and cell phone carriers.
6. Spend less on entertainment or at restaurants. Whether it's dining out or going to amusement parks, entertainment can eat up a big chunk of your budget. Look for less expensive ways to have fun.
Learn to cook at home and keep the fridge well stocked with ingredients for things that you know you can cook from scratch when you come home late and don't have much time to whip up a grand meal.
Instead of going out to eat with friends, invite them over for a potluck.
7. Do more yourself. It may be convenient to use a laundry service or to have someone else shovel your driveway, but if you're physically capable of doing these things yourself. Think about the money you can save.
If you're not very handy, try to teach yourself to do more around the house. If you need a simple repair done, you may be able to watch a video online or take a class at a local home improvement store to learn how to do it yourself.
8. Save money on energy. Go green around the house to save money on your utility bills each month.
Sealing up air gaps can reduce your heating and cooling bills. If you own your home, investing in a properly insulated attic can make a huge difference.
Turning your heat down just a few degrees in the winter can make a big difference in your energy bills as well. A programmable thermostat will let you automate the temperature of your house so you won't spend money on heating the place to a comfortable level when you're not at home.
9. Avoid bank and credit card fees. Choose your bank and credit card providers wisely in order to avoid unnecessary fees.
Make sure to only use the ATM at your bank if you will get charged for using outside ATMs.
10. Aim to have a few no-spend days a month. After a while, it becomes a game: "How can I run my life today without writing anything down in my little blue book?" "How ingenious can I be to make do with the things, food, and resources I already have at my disposal?" See how often you can turn this into a habit.

Part 4 Earning More.
1. Get a better job. If spending less is just not enough, it may be time to get a better job that will allow you to make more money. Start by updating your resume, searching for listings online, and networking with other professionals in your field.
Don't forget to look for advancement opportunities within your company.
2. Do something else on the side. Using your skills to provide freelance or consulting services is a great way to earn additional income. If this won't work with your profession, get a part-time job or find creative ways to make some extra cash on the side.
You can make some extra money by performing jobs like mowing lawns, cleaning houses, or even walking dogs for people in your neighborhood.
3. Sell stuff you don't need. You probably have at least a few possessions that you no longer need or want, and you can turn those items into extra cash by selling them to people who do want them.
If you have lots of unwanted items, try having a yard sale.

Community Q&A.

Question : My family barely has any money. My dad has his own company, but it hasn't gotten any business in a long time. I have some money saved up, and I was think of leaving a little in my dad's wallet. What do you think?
Answer : Definitely do. Work as much as you can and give and much as you can. Also putting your family's money in a good, interest-bearing account can help a lot.

Tips.

To always have money in the bank to pay regular bills, add them up for the past year and divide by 52. Round up to the next 25, 50, or 100 dollars. Remember to add in quarterly or annual bills, too.
Buy clothes that can be used for several different occasions instead of only one-time events.
Use coupons on items whenever you can.
Start a Christmas Club account, but put in more than you expect to spend on gifts. The excess is great for a mini-vacation or special purchase.
Get a jar to collect your spare change. When it's full, take it to the bank. (Don't take it to one of those coin counters, as they charge for counting your change.)
Take it a day at a time. Start small, set goals, reward yourself (not with any type of shopping, of course) and enjoy playing the game.

July 02, 2020

How to Fundraise

How to Fundraise.

There's no question that charities, nonprofits, PTAs, clubs and many other groups need to raise funds. The question is, how to do it effectively. This article introduces several ways that your group can raise funds for its projects.

Method 1 Preparing to Fundraise.
1. Define your needs. This is the most important first step in fundraising. To effectively raise money, you have to know what you're fundraising for in the first place. Take the time to figure out your group's needs and budget the costs to meet them.
2. Develop the language. Now that you have identified your needs, you need to articulate them. Develop some language describing what you need, why you need it, how it will help the community you serve, and how much it will cost. You may not need all of this written language for every fundraising effort, but you'll appreciate having it on hand when it's required.
3. Develop a method to track donations and donor information. For legal, accounting and internal tracking purposes, you will need the capacity to record and track donations and donor information. Your method can be a simple spreadsheet, or a complex, custom database, but you must have a usable tool.
4. Get staff or volunteers to do the work. Fundraising is work, no doubt about it. You will need capable, reliable people to manage records, staff events, stuff envelopes, solicit donations, write emails, update websites and more. Your board should definitely be involved in fundraising. You can also recruit volunteers from your constituency, from local service organizations, colleges and universities, or from online services like Volunteer Match.

Method 2 Legal Issues.
The intricate legal issues surrounding fundraising are governed by the IRS code and individual state laws. Here is an overview of the most critical issues.
1. Understand tax deductibility. Many donations to charity are tax deductible, but not all are. In order to do so you must be a 501 c 3 or have the right to use another group's 501 c 3 to process your donations.
2. Disclose whether goods or services were provided in exchange for the donation. If your organization provided anything in exchange for the donation, you must say that in your acknowledgement letter. This is called a quid pro quo contribution. An example of a quid pro quo contribution would be if you made a donation of $100 and got a cookbook valued at $30 in exchange. Only $70 of this contribution is deductible.
You usually need not worry about very small items like a refrigerator magnet or a pen.
For quid pro quo contributions, you must provide an acknowledgement if the cash donation is $75 or greater, even if the deductible part is less than $75.
3. Provide acknowledgement letters. Acknowledgement letters are important for a few reasons. They are the right thing to do, of course, but they also provide the donor with a record of their donation for tax purposes. The IRS requires that an acknowledgement letter be provided for any gift of $250 or more.
Acknowledgements must be written, but can be electronic or printed.
Although the threshold is $250, it's good practice to acknowledge every gift you receive, even if it's $5.
4. Register your charity (optional). 40 states in the U.S. require charities to register with a state agency in order to solicit donations from residents of those states. Solicitation can include any type of request, whether by mail, online or by phone. Check online to see whether you are required to register.
5. Talk to a professional. The best way to understand the legal issues in fundraising is to get professional advice. Check with your financial staff, an attorney or an accountant who specializes in nonprofit finance if you have any questions at all about the law.

Method 3 Fundraising Events.
1. Understand the method. A fundraising event is a party or gathering intended to raise money for an organization, ranging from formal NGOs to informal clubs. Typically, revenue comes in through ticket sales, and in some cases, corporate sponsorships. Although events are notorious for being expensive, time consuming and not terribly cost effective, they don't have to be that way. Here are some ideas for simple fundraising events that don't require a lot of money or energy.
2. Hold a house party. House parties are a tried and true method of fundraising. A house party is a small event hosted at the home of someone close to your organization. The host invites friends and contacts whom he or she believes might be interested in donating to your program. After mingling and refreshments, the president or director of your organization makes a short presentation about your group. Guests have an opportunity to ask questions, then, the host invites them make a donation. Some tips on house parties.
A house party does not have to be fancy. It can be a dinner party or a cocktail party. It can have 20 guests or 6. Refreshments can be catered, or as simple as coffee and cake.
Make sure that the host of the party directly asks guests to donate.
Have staff and board members on hand to mingle and answer questions.
If appropriate, consider asking a program participant to attend. It can be very powerful and compelling for donors to meet and speak with someone who has received your organization's services.
3. Make a booth. If you go to the manager of a store, like Walmart, the you can ask to make a booth in front of the store. This can be very successful.
4. Hold a restaurant fundraiser. Many restaurants have established fundraising programs whereby nonprofits can receive a percentage of sales on a designated day. These programs are very common among big chain restaurants, but smaller establishments offer them too. Search online to find out what restaurants in your area offer this fundraising tool. Once you've identified a restaurant, follow these tips.
Understand the terms. Restaurants have different guidelines and rules for fundraisers. Some donate a percentage of the entire bill; some exclude alcohol sales. Some require that customers present a coupon or other document for your group to receive a donation, others don't. Make sure you are clear on what's expected so you can take full advantage of the event.
Get the word out. Make sure your constituents and everyone in your group knows about your event. Encourage them to invite their friends too.
Provide materials. Set out brochures, postcards or other items to let diners know that their purchases are supporting your organization.
5. Hold a dessert party. A dessert party is a fun, simple and inexpensive event. Hold the party at the home of a board member or other friend of your organization. Ask volunteers to make desserts in single serving sizes. Provide coffee, tea and soft drinks. Sell tickets at a modest price. Enjoy the sweets!
6. Hold a craft fair. A craft fair is an easy and very inexpensive fundraising event. Your organization rents table space to vendors to display and sell their products. If you like, you can also ask vendors to donate a percentage of their sales to your group. If you have a facility you'd like to show off, a craft fair is a great way to get the community to visit.
Add to the fun and interest of the event by scheduling performances, speakers or other entertainment throughout the day.
Make sure there are opportunities for customers and visitors to learn about and make a donation to your organization during the event.
Consider holding a raffle as an additional way to generate revenue at the craft fair.
7. Sell your passion. If you want a fun and passionate fundraiser that doesn't take a lot of planning, consider using LoveMyHeart.org. It's simple, fun, and everyone loves the Love My Heart shirts you sell! Not to mention there are no out of pocket costs like the other events listed here!

Method 4 Fundraising Online.
1. Understand the method. In some ways, fundraising online is not much different than fundraising in the physical world. You still need to be able to effectively communicate your needs, tell stories that illustrate your work, and motivate people to make a donation to your cause. The difference is that while in the physical world you may have time to build a relationship with a potential donor, that isn't always the case online. They may only come across your website once, so you may only have one shot at convincing them to give. Therefore, it's even more important to communicate your message in a compelling way. Here are some ways to do it.
2. Set up a web page. The most basic way to raise funds online is to set up a webpage for donations, then let people know to go to that page to make a contribution. Include the link in written and electronic communications you send to your members or constituents. Make sure it's accessible from your home page, and other pages of your website. Keep these tips in mind.
Most donations made online are done by credit card transaction. If you are not already set up to accept credit cards, there are a number of companies that provide credit card donation processing services for a fee.
Offer the option of recurring donations. Recurring donations can benefit your organization in a few ways. Many donors find it easier to make a larger donation if its split up into quarterly or monthly payments; some very committed donors may want to make an annual donation to you. Make this as easy as possible by setting up recurring payments. Ask your online donation processing service how to offer this to your donors.
Some organizations opt to accept online donations through PayPal. Visit PayPal's website to learn more.
3. Sign up with an affiliate program. Fundraising with an affiliate program is a lot like making commissions off sales. An online merchant or shopping portal provides the charity with a unique affiliate link. Shoppers use the link to access the merchant, make purchases, and the charity receives a percentage of the sales. Here are some tips for affiliate fundraising.
There are dozens of merchants and portals that offer this fundraising tool. You can sign up for more than one to maximize your potential donations.
Consider your constituents. When you select a merchant, consider where your constituents are likely to shop online. It might be a good idea to do a survey or ask a few key players to make sure you're choosing well.
Get the word out. Most affiliate programs offer widgets or banners that are easy to drop into your website. Include these on your website and in electronic communications to let your supporters know how they can help.
4. Consider crowdfunding. Crowdfunding combines online fundraising with social media to help individuals and organizations raise funds. it's a way for many individuals to pool their resources and donations to get projects funded. Donors can typically contribute as little as $1.00, making it easy for lots of people to participate. There are several websites set up for crowdfunding. Funds-seekers create a campaign page describing their project or organization, and explain how the funds will be used and what, if any, benefit donors will receive for participating. Here are some tips on fundraising using crowdfunding.
Crowdfunding is particularly well suited for funding discrete projects. Rather than launch a campaign asking for all the money you need to operate a program, consider how you can break it up a bit. For example, a school music program could launch a campaign to purchase 10 instruments for low income students.
Articulate your needs and your project clearly. The clearer you can be about why you need the money and how you will use it, the better.
Get creative. Add media to your campaign page to increase readers' interest. Videos, images and success stories are great for telling your story, so use them to your advantage.

Community Q&A.

Question : How old do I have to be to start a fundraiser?
Community Answer : You can do a lot of these fundraising activities at any age, but you'll probably want an adult around to help you manage the money and make sure it goes where it is supposed to. The crowdfunding websites may require you to be 18.
Question : What other types of fundraising are there?
Community Answer : Bottle drives, bake sales, car washes, donation jars at local stores, yard sales, an action of donated goods from local stores, etc.
Question : My church has to gather funds (about 9-10 thousand) to be able to pay for a youth mission trip. They rely mostly on donations, and other methods may be wrong. Do you have any suggestions for this situation?
Community Answer : You can always advertise your fundraising idea as a way to create fellowship and bring new members into the church. Have a community potluck where your church members bring in dishes to feed a large group and outsiders make donations to eat.
Question : How do I fundraise in an apartment?
Community Answer : You can ask your landlord or super if you can use some space in the lobby. You can also organize a fundraiser outside or at a nearby park or other facility.

Tips

There are many ways to raise funds, but some ways are far better than others. If you want a quick, free fundraiser that doesn't take a lot of planning, your options are limited.
You can host a sports match between two teams and charge an entrance fee. That way you can ask for donations from the guests.

May 07, 2020

How to Calculate an Amount to Be Financed

How to Calculate an Amount to Be Financed.

The full price of a major purchase such as a house, boat or car is rarely financed. Most lenders for these types of loans require a down payment of some sort, usually expressed as a percentage. Additionally, mortgage loans list a different figure, "amount financed," which does not include prepaid fees paid to the lender. Knowing how to calculate an amount to be financed will help you make informed consumer decisions.



Part 1 Calculating a Commercial Loan Amount to be Financed.

1. Determine the selling price. For a vehicle, boat, or another type of commercial loan purchase this will be the amount you agree to pay for your new acquisition. It does not include other aspects of the deal such as the trade-in allowance, fees, taxes, and other closing costs.

2. Subtract any net trade-in allowance. For auto or boat purchases, among others, a dealer may offer a trade-in allowance or credit for giving them your old car or boat when you buy a new one. The value of this item, or a credit provided by the dealer, is then subtracted from what you owe on your new purchase. The net trade-in allowance is found by subtracting the amount still owed on your trade from the trade-in allowance offered by the dealership.

If the trade-in is high enough, dealers don't typically require an extra payment, such as a down payment.

Some dealers may allow you to use the trade-in value of your old vehicle to cover the required down payment on a new one (assuming the old one holds enough value).

3. Account for any cash rebates that are applied to the purchase price of the item. Dealers may also offer cash rebates as a way to incentivize purchases. These cash rebates are simply subtracted from the purchase price at closing. They also do not need to be included in the amount to be financed. Rebates may be provided to certain buyers, like students or military veterans, or may be specific to certain vehicles.

4. Settle on a loan amount. The amount left after rebates and trade-ins is the the amount owed. This amount must be either paid in full or borrowed from a lender and paid off in installments over time. From here, you can calculate the down payment if the lender requires one. For example, a lender might require 10 or 20 percent down on your purchase. Your loan amount is then the amount remaining after the down payment is subtracted out.

5. Use the loan amount as your amount financed. "Amount financed" is a term that is specific to home loans. All other loans simply refer to the amount financed as the total amount of the loan provided to the borrower. For these types of loans, simply use the loan amount after the down payment as calculated in this part as your amount financed.



Part 2 Determining the Amount Financed for a Mortgage Loan.

1. Negotiate a price for the asset with the seller. For a home, this will be your accepted offer price. For example, you might talk a homeowner down to selling a property for $100,000.

2. Subtract any deposits. Home purchases may have required a "good faith" deposit. Other purchases may also require a deposit be made while bidding on or reserving the item. This deposit is typically paid upon submission of an offer to purchase. This money is then subtracted from the purchase price, as you have already paid it.

Deposits are either returned (depending upon terms) or converted into the down payment amount and/or closing costs.

For example, if you put in a $3,000 good faith deposit on a $100,000 home, you would subtract this from the $100,000 to get $97,000.

3. Finalize the loan amount. The portion of the original purchase price remaining after these deductions is your loan amount, assuming you are planning on financing the purchase. This amount must be borrowed from a lender and then repaid over a period of time per a loan agreement. The loan amount is the amount borrowed from the lender, not the amount that will eventually be repaid in total, which also includes interest expenses.

4. Deduct the down payment amount. The down payment is paid in full upon closing the sale. It is generally a percentage of the total purchase price and is designed to provide security for the lender in the event of default. Therefore, it is not included in the amount financed.

Many mortgage lenders require 20 percent down on a real estate transaction, although you may be able to secure an FHA-backed mortgage requiring as little as 5 percent down payment. A lower loan balance results in less interest expense and the possible requirement of mortgage insurance.

A lower downpayment is expected on government- guaranteed loans such as FHA or VA because the lender has recourse to the Federal government in the event of default.

For example, if you paid a 20 percent down payment on the $100,000 house purchase, which would be $20,000, you would subtract this from your total.

Your good faith deposit may be applied towards your down payment. This means that the loan amount would still be the purchase price minus the down payment, which is $80,000 in this case.

5. Understand how amount financed differs from the loan amount. "Amount financed" is a term set by the 1968 Truth in Lending Act to describe how much credit is provided to a borrower when they take out a home loan. It is calculated by subtracting prepaid fees and finance charges from the loan amount, since these fees are paid at closing simultaneously with the execution of the loan documents. This means that the amount financed is always less than the actual loan amount. The amount financed is provided to borrowers on the Truth in Lending Disclosure Statement, which is supplied after you apply for a home loan.

6. Add up prepaid fees. Prepaid fees are subtracted from the loan amount to arrive at the amount financed. These fees include prepaid points, homeowners association fees, mortgage insurance, and escrow company fees. They also include lender fees like underwriting fees, tax service, process fees, and prepaid interest. Add all of these fees up to arrive a total prepaid fees amount.

7. Subtract total prepaid fees from the loan amount. Subtract all of the prepaid fees from the loan amount to get your amount financed. This information will also be available on your Truth in Lending Disclosure Statement.[9]



Part 3 Using the Amount Financed.

1. Compare different lenders. If you have the amount financed for a mortgage loan, you can use this information to compare different lenders by looking at the associated fees and interest rates. This information is provided on the Truth in Lending Disclosure Statement, which is provided by all lenders to loan applicants. If you instead are financing another purchase, you can use your amount of financing required to apply to a variety of loans and look for the best combination of fees and interest rate.

2. Calculate the amount of interest you will pay. Your loan will likely be charged compound interest as you pay it off. Compound interest paid increases with the loan duration, the interest rate, and the compounding frequency (how often the compound interest is calculated each year). When you have the amount financed, you can use online interest calculators to determine how much interest you will pay on loans with different loan terms. A longer, higher-interest loan will end up costing you much more money in the long run than a shorter-term, low-interest loan.

For more information, see how to calculate interest payments.

3. Calculate loan payments. If you know how much you need to borrower (your loan amount), you can use this information to check for loan rates online. Check loan aggregator sites to find interest rates for the type and size of loan that you need. Then, input this information into an online loan calculator to figure out what your monthly payments might be. The Financial Industry Regulatory Authority (FINRA) provides a good calculator at http://apps.finra.org/Calcs/1/Loan.

4. Assess your ability to afford a purchase. Once you have an idea of the monthly loan payments, you can use this information to figure out how much you can afford to take out in a loan. Assess your ability to afford the loan by starting with your monthly after-tax income. Then, subtract any existing debt payments (mortgage, auto, etc.), monthly expenses like utilities and food, and savings or contributions to an emergency fund. The amount left is money that you can afford to pay towards a new loan's monthly payment.

Most financial planners suggest limiting house payments plus taxes and insurance to 25 to 28 percent of take-home income.

For example, if your household net income is $7,000 per month, your total outlay for housing should be no more than $1,960 per month.

5. Determine mortgage APR. Your actual mortgage annual percentage rate (APR) is calculated using your amount financed, rather than the loan amount. That is, your actual APR will be higher than the interest rate listed on your loan. To calculate your actual APR, find your monthly payment by using your stated interest rate, loan term, and loan amount and entering them into a loan calculator. Then, record your monthly payment and find a loan calculator that allows you to input your monthly payment, loan duration, and loan amount and receive an interest rate as the output. The output will be your actual APR.

A good calculator for this purpose can be found at http://www.thecalculatorsite.com/finance/calculators/interest-rate-calculator.php.



Question : Gomez family has just purchased a $2,574.54 microcomputer. They made a down payment of $574.54. Through the store's installemnt plan, they have agreed to pay $121.00 per month for the next 18 months. What is the amount financed?

Answer : The amount financed is the portion of the purchase price paid for by the installment plan. In this case, it is the $2,574.54 (purchase price) - $574.54 (the down payment), which is $2,000. The amount to be financed does not include the interest paid during the plan, which will be $178.

Question : Selling Price: $258,900. Loan term: 30 months on 5.25% interest rate. Down payment: $64,7325. What will be the amount to be financed?

Answer : You will be financing the selling price plus any fees, minus the down payment.



Tips.

When shopping for real estate, be sure that your price range reflects your planned amount financed. You may be able to afford more or less, depending upon your savings and the amount of a down payment.

Warnings.

The purchase agreement used by many car dealerships is notoriously complicated and confusing. Be certain that you understand every line item in the agreement before signing it when buying a new or used vehicle.

February 10, 2020

how to calculate an amount to be financed

How to Calculate an Amount to Be Financed.

The full price of a major purchase such as a house, boat or car is rarely financed. Most lenders for these types of loans require a down payment of some sort, usually expressed as a percentage. Additionally, mortgage loans list a different figure, "amount financed," which does not include prepaid fees paid to the lender. Knowing how to calculate an amount to be financed will help you make informed consumer decisions.



Part 1 Calculating a Commercial Loan Amount to be Financed.

1. Determine the selling price. For a vehicle, boat, or another type of commercial loan purchase this will be the amount you agree to pay for your new acquisition. It does not include other aspects of the deal such as the trade-in allowance, fees, taxes, and other closing costs.

2. Subtract any net trade-in allowance. For auto or boat purchases, among others, a dealer may offer a trade-in allowance or credit for giving them your old car or boat when you buy a new one. The value of this item, or a credit provided by the dealer, is then subtracted from what you owe on your new purchase. The net trade-in allowance is found by subtracting the amount still owed on your trade from the trade-in allowance offered by the dealership.

If the trade-in is high enough, dealers don't typically require an extra payment, such as a down payment.

Some dealers may allow you to use the trade-in value of your old vehicle to cover the required down payment on a new one (assuming the old one holds enough value).

3. Account for any cash rebates that are applied to the purchase price of the item. Dealers may also offer cash rebates as a way to incentivize purchases. These cash rebates are simply subtracted from the purchase price at closing. They also do not need to be included in the amount to be financed. Rebates may be provided to certain buyers, like students or military veterans, or may be specific to certain vehicles.

4. Settle on a loan amount. The amount left after rebates and trade-ins is the the amount owed. This amount must be either paid in full or borrowed from a lender and paid off in installments over time. From here, you can calculate the down payment if the lender requires one. For example, a lender might require 10 or 20 percent down on your purchase. Your loan amount is then the amount remaining after the down payment is subtracted out.

5. Use the loan amount as your amount financed. "Amount financed" is a term that is specific to home loans. All other loans simply refer to the amount financed as the total amount of the loan provided to the borrower. For these types of loans, simply use the loan amount after the down payment as calculated in this part as your amount financed.



Part 2 Determining the Amount Financed for a Mortgage Loan.

1. Negotiate a price for the asset with the seller. For a home, this will be your accepted offer price. For example, you might talk a homeowner down to selling a property for $100,000.

2. Subtract any deposits. Home purchases may have required a "good faith" deposit. Other purchases may also require a deposit be made while bidding on or reserving the item. This deposit is typically paid upon submission of an offer to purchase. This money is then subtracted from the purchase price, as you have already paid it.

Deposits are either returned (depending upon terms) or converted into the down payment amount and/or closing costs.

For example, if you put in a $3,000 good faith deposit on a $100,000 home, you would subtract this from the $100,000 to get $97,000.

3. Finalize the loan amount. The portion of the original purchase price remaining after these deductions is your loan amount, assuming you are planning on financing the purchase. This amount must be borrowed from a lender and then repaid over a period of time per a loan agreement. The loan amount is the amount borrowed from the lender, not the amount that will eventually be repaid in total, which also includes interest expenses.

4. Deduct the down payment amount. The down payment is paid in full upon closing the sale. It is generally a percentage of the total purchase price and is designed to provide security for the lender in the event of default. Therefore, it is not included in the amount financed.

Many mortgage lenders require 20 percent down on a real estate transaction, although you may be able to secure an FHA-backed mortgage requiring as little as 5 percent down payment. A lower loan balance results in less interest expense and the possible requirement of mortgage insurance.

A lower downpayment is expected on government- guaranteed loans such as FHA or VA because the lender has recourse to the Federal government in the event of default.

For example, if you paid a 20 percent down payment on the $100,000 house purchase, which would be $20,000, you would subtract this from your total.

Your good faith deposit may be applied towards your down payment. This means that the loan amount would still be the purchase price minus the down payment, which is $80,000 in this case.

5. Understand how amount financed differs from the loan amount. "Amount financed" is a term set by the 1968 Truth in Lending Act to describe how much credit is provided to a borrower when they take out a home loan. It is calculated by subtracting prepaid fees and finance charges from the loan amount, since these fees are paid at closing simultaneously with the execution of the loan documents. This means that the amount financed is always less than the actual loan amount. The amount financed is provided to borrowers on the Truth in Lending Disclosure Statement, which is supplied after you apply for a home loan.

6. Add up prepaid fees. Prepaid fees are subtracted from the loan amount to arrive at the amount financed. These fees include prepaid points, homeowners association fees, mortgage insurance, and escrow company fees. They also include lender fees like underwriting fees, tax service, process fees, and prepaid interest. Add all of these fees up to arrive a total prepaid fees amount.

7. Subtract total prepaid fees from the loan amount. Subtract all of the prepaid fees from the loan amount to get your amount financed. This information will also be available on your Truth in Lending Disclosure Statement.[9]



Part 3 Using the Amount Financed.

1. Compare different lenders. If you have the amount financed for a mortgage loan, you can use this information to compare different lenders by looking at the associated fees and interest rates. This information is provided on the Truth in Lending Disclosure Statement, which is provided by all lenders to loan applicants. If you instead are financing another purchase, you can use your amount of financing required to apply to a variety of loans and look for the best combination of fees and interest rate.

2. Calculate the amount of interest you will pay. Your loan will likely be charged compound interest as you pay it off. Compound interest paid increases with the loan duration, the interest rate, and the compounding frequency (how often the compound interest is calculated each year). When you have the amount financed, you can use online interest calculators to determine how much interest you will pay on loans with different loan terms. A longer, higher-interest loan will end up costing you much more money in the long run than a shorter-term, low-interest loan.

For more information, see how to calculate interest payments.

3. Calculate loan payments. If you know how much you need to borrower (your loan amount), you can use this information to check for loan rates online. Check loan aggregator sites to find interest rates for the type and size of loan that you need. Then, input this information into an online loan calculator to figure out what your monthly payments might be. The Financial Industry Regulatory Authority (FINRA) provides a good calculator at http://apps.finra.org/Calcs/1/Loan.

4. Assess your ability to afford a purchase. Once you have an idea of the monthly loan payments, you can use this information to figure out how much you can afford to take out in a loan. Assess your ability to afford the loan by starting with your monthly after-tax income. Then, subtract any existing debt payments (mortgage, auto, etc.), monthly expenses like utilities and food, and savings or contributions to an emergency fund. The amount left is money that you can afford to pay towards a new loan's monthly payment.

Most financial planners suggest limiting house payments plus taxes and insurance to 25 to 28 percent of take-home income.

For example, if your household net income is $7,000 per month, your total outlay for housing should be no more than $1,960 per month.

5. Determine mortgage APR. Your actual mortgage annual percentage rate (APR) is calculated using your amount financed, rather than the loan amount. That is, your actual APR will be higher than the interest rate listed on your loan. To calculate your actual APR, find your monthly payment by using your stated interest rate, loan term, and loan amount and entering them into a loan calculator. Then, record your monthly payment and find a loan calculator that allows you to input your monthly payment, loan duration, and loan amount and receive an interest rate as the output. The output will be your actual APR.

A good calculator for this purpose can be found at http://www.thecalculatorsite.com/finance/calculators/interest-rate-calculator.php.



Question : Gomez family has just purchased a $2,574.54 microcomputer. They made a down payment of $574.54. Through the store's installemnt plan, they have agreed to pay $121.00 per month for the next 18 months. What is the amount financed?

Answer : The amount financed is the portion of the purchase price paid for by the installment plan. In this case, it is the $2,574.54 (purchase price) - $574.54 (the down payment), which is $2,000. The amount to be financed does not include the interest paid during the plan, which will be $178.

Question : Selling Price: $258,900. Loan term: 30 months on 5.25% interest rate. Down payment: $64,7325. What will be the amount to be financed?

Answer : You will be financing the selling price plus any fees, minus the down payment.



Tips.

When shopping for real estate, be sure that your price range reflects your planned amount financed. You may be able to afford more or less, depending upon your savings and the amount of a down payment.

Warnings.

The purchase agreement used by many car dealerships is notoriously complicated and confusing. Be certain that you understand every line item in the agreement before signing it when buying a new or used vehicle.

February 10, 2020

How to Calculate Finance Charges on a Leased Vehicle

How to Calculate Finance Charges on a Leased Vehicle.

At some point, you may want or need to have a new car. You may also want to weigh the cost differences between leasing and buying before you make your decision. One way to compare costs is to figure out exactly what you will be paying for each. When you buy a car, you finance the amount charged for the vehicle and the interest rate is clear. When you lease a car, you pay to use the vehicle for a period of time, similar to renting it, and turn it in at the end of the lease. The finance charges for a lease may not always be clear. To calculate the finance charges on a leased vehicle, you need to know only a few things: the net capitalized cost, residual value and money factor. If these are known, calculating your finance charges is a simple process.

Part 1 Collecting Necessary Data.

1. Determine the net cap cost. The term “net cap cost” is a shortened form of net capitalized cost. This is ultimately the overall price of the vehicle. The net cap cost may be affected by other additions or subtractions, as follows.

Any miscellaneous fees or taxes are added to the cost to increase the net cap cost.

Any down payment, trade in or rebates are considered “net cap reductions.” These are subtracted and will reduce the net cap cost.

Suppose, for example, that a vehicle is listed with a cost of $30,000. There is a rebate or you make a down payment of $5,000. Therefore, the net cap cost for this vehicle is $25,000.

2. Establish the residual value of the vehicle. This is a bit like predicting the future. The residual value is the vehicle’s value at the end of the lease, when you will return it. This is always a bit uncertain because nobody can predict the exact condition of the vehicle, the mileage or the repairs that it will undergo during the lease. To establish the residual value, dealers use industry guide books, such as the Automotive Leasing Guide (ALG).

The graphic shown above illustrates the decline in the vehicle’s value over time. For this example, the residual value at the end of the term is set at $15,000.

Some dealers choose not to use the ALG. Instead, they may develop their own guide or functions for setting residual values.

3. Find out the dealer’s money factor. Leased vehicles do not charge interest in the same way that purchase agreements do. There is, however, a finance charge that is analogous to interest. You are paying the leasing company for the use of their vehicle during the term of your lease. This charge is based on a number called the “money factor.”

The money factor is not generally publicized. You will need to ask the dealer to share it with you.

The money factor does not look like an interest rate. It will generally be a decimal number like 0.00333. To compare the money factor to an annual interest rate, multiply the money factor by 2400. In this example, a money factor of 0.00333 is roughly like a loan interest rate of 0.00333x2400 = 7.992% interest. This is not an exact equivalence but is a regularly accepted comparison value.

Part 2 Performing the Calculations.

1. Add the net cap cost and the residual value. The finance charge is based on the sum of the net cap cost and the residual value. At first glance, this appears to be an unfair doubling of the car’s value. However, in combination with the money factor, this works as a way to average the net cap cost and the residual value. You end up paying the finance fee on an average overall value of the car.

Consider the example started above. The net cap cost is $25,000, and the residual is $15,000. The total, therefore, is the sum of $25,000+$15,000 = $40,000.

2. Multiply that sum by the money factor. The money factor is applied to the sum of the net cap cost and the residual value of the car to find the monthly finance charge.

Continuing with the example above, use the money factor 0.00333. Multiply this by the sum of the net cap cost and residual as follows:

$40,000 x 0.00333 = $133.2.

3. Apply the monthly finance charge. The result of the final calculation is the monthly finance charge that will be added to your lease payment. In this example, the finance charge is $133.20 each month.

4. Figure the full monthly payment. The finance charge may be the largest portion of your monthly payment, but you cannot count on it to be the full payment. In addition to the finance charge, many dealers will also charge a depreciation fee. This is the cost that you pay to compensate the dealer for the decreased value of the car over time. Finally, you may be responsible for assorted taxes.

Before you sign any lease agreement, you should find out the full monthly charge you are responsible for. Ask the dealer to itemize all the costs for you, and make sure that you understand and can afford them all.

Part 3 Negotiating with the Dealer.

1. Ask for the data you want. Many people, when leasing a vehicle, seem satisfied to accept the bottom line figure that the dealer assigns. However, to verify that any deal you negotiate is actually honored, you need to know the details of the finance charge calculations. Without asking for the data, you could be the victim of carelessness, simple error, or even fraud.

You could negotiate a reduced price for the vehicle, but then the dealer could base the calculations on the original value anyway.

The dealer might not apply proper credit for a trade-in vehicle.

The dealer could make mathematical errors in calculating the finance charge.

The dealer could apply a money factor other than the one used in the original negotiations.

2. Press the dealer for the “money factor.” The money factor is a decimal number that car dealerships use to calculate the finance charges. This number is not an interest rate but is somewhat analogous to interest rates. Some lease dealers may publicize the money factor, while others may not. You should ask for the money factor that your dealer is using. Also ask how the money factor is used to calculate the finance fee charged on your lease.

3. Ask the dealer to show you the calculation worksheet. The dealer is not required to share with you the calculations that go into the finance charge and monthly payments on your leased vehicle. Unless you ask specifically, you will probably never see that information. You should ask the dealer, sales clerk or manager to share the calculations with you. Even if you have the individual bits of data, you may not be able to confirm that the figures were calculated accurately or fairly unless you compare your notes to the dealer’s calculations.

4. Threaten to leave if the dealer is not forthcoming with information. The only leverage you have in the negotiations over a leased vehicle’s finance charges is the ability to walk away. Make it clear to the dealer that you want to verify the calculations and the individual pieces of information that go into figuring your finance charges. If the dealer is unwilling to share this information with you, you should threaten to leave and lease your car from somewhere else.

Tips.

If the lease dealership will not provide you with the money factor, go to a different dealer. You cannot determine and compare your true costs and fair value unless you have this information.

The higher the car value at lease end (that is, less depreciation), the less your finance charges will be, which, in turn, will reduce your monthly payment.

Warnings

Some dealers may present the money factor number so that it is easier to read, such as 3.33; however, this could be misinterpreted as the interest rate. Be aware that this is not the rate that will be used. This number should be converted to the actual money factor by dividing by 1,000 (3.33 divided by 1,000 = 0.00333).

Be aware that the finance cost (as calculated here to be $133.20) is not necessarily your total monthly payment. It is only the finance charge and may not include other charges such as sales tax or the acquisition fee.

Things You'll Need : Net cap cost, Residual cost, Money factor, Paper, Pen or pencil, Calculator.

December 19, 2019

how to calculate finance charges on a leased vehicle

How to Calculate Finance Charges on a Leased Vehicle.

At some point, you may want or need to have a new car. You may also want to weigh the cost differences between leasing and buying before you make your decision. One way to compare costs is to figure out exactly what you will be paying for each. When you buy a car, you finance the amount charged for the vehicle and the interest rate is clear. When you lease a car, you pay to use the vehicle for a period of time, similar to renting it, and turn it in at the end of the lease. The finance charges for a lease may not always be clear. To calculate the finance charges on a leased vehicle, you need to know only a few things: the net capitalized cost, residual value and money factor. If these are known, calculating your finance charges is a simple process.

Part 1 Collecting Necessary Data.

1. Determine the net cap cost. The term “net cap cost” is a shortened form of net capitalized cost. This is ultimately the overall price of the vehicle. The net cap cost may be affected by other additions or subtractions, as follows.

Any miscellaneous fees or taxes are added to the cost to increase the net cap cost.

Any down payment, trade in or rebates are considered “net cap reductions.” These are subtracted and will reduce the net cap cost.

Suppose, for example, that a vehicle is listed with a cost of $30,000. There is a rebate or you make a down payment of $5,000. Therefore, the net cap cost for this vehicle is $25,000.

2. Establish the residual value of the vehicle. This is a bit like predicting the future. The residual value is the vehicle’s value at the end of the lease, when you will return it. This is always a bit uncertain because nobody can predict the exact condition of the vehicle, the mileage or the repairs that it will undergo during the lease. To establish the residual value, dealers use industry guide books, such as the Automotive Leasing Guide (ALG).

The graphic shown above illustrates the decline in the vehicle’s value over time. For this example, the residual value at the end of the term is set at $15,000.

Some dealers choose not to use the ALG. Instead, they may develop their own guide or functions for setting residual values.

3. Find out the dealer’s money factor. Leased vehicles do not charge interest in the same way that purchase agreements do. There is, however, a finance charge that is analogous to interest. You are paying the leasing company for the use of their vehicle during the term of your lease. This charge is based on a number called the “money factor.”

The money factor is not generally publicized. You will need to ask the dealer to share it with you.

The money factor does not look like an interest rate. It will generally be a decimal number like 0.00333. To compare the money factor to an annual interest rate, multiply the money factor by 2400. In this example, a money factor of 0.00333 is roughly like a loan interest rate of 0.00333x2400 = 7.992% interest. This is not an exact equivalence but is a regularly accepted comparison value.

Part 2 Performing the Calculations.

1. Add the net cap cost and the residual value. The finance charge is based on the sum of the net cap cost and the residual value. At first glance, this appears to be an unfair doubling of the car’s value. However, in combination with the money factor, this works as a way to average the net cap cost and the residual value. You end up paying the finance fee on an average overall value of the car.

Consider the example started above. The net cap cost is $25,000, and the residual is $15,000. The total, therefore, is the sum of $25,000+$15,000 = $40,000.

2. Multiply that sum by the money factor. The money factor is applied to the sum of the net cap cost and the residual value of the car to find the monthly finance charge.

Continuing with the example above, use the money factor 0.00333. Multiply this by the sum of the net cap cost and residual as follows:

$40,000 x 0.00333 = $133.2.

3. Apply the monthly finance charge. The result of the final calculation is the monthly finance charge that will be added to your lease payment. In this example, the finance charge is $133.20 each month.

4. Figure the full monthly payment. The finance charge may be the largest portion of your monthly payment, but you cannot count on it to be the full payment. In addition to the finance charge, many dealers will also charge a depreciation fee. This is the cost that you pay to compensate the dealer for the decreased value of the car over time. Finally, you may be responsible for assorted taxes.

Before you sign any lease agreement, you should find out the full monthly charge you are responsible for. Ask the dealer to itemize all the costs for you, and make sure that you understand and can afford them all.

Part 3 Negotiating with the Dealer.

1. Ask for the data you want. Many people, when leasing a vehicle, seem satisfied to accept the bottom line figure that the dealer assigns. However, to verify that any deal you negotiate is actually honored, you need to know the details of the finance charge calculations. Without asking for the data, you could be the victim of carelessness, simple error, or even fraud.

You could negotiate a reduced price for the vehicle, but then the dealer could base the calculations on the original value anyway.

The dealer might not apply proper credit for a trade-in vehicle.

The dealer could make mathematical errors in calculating the finance charge.

The dealer could apply a money factor other than the one used in the original negotiations.

2. Press the dealer for the “money factor.” The money factor is a decimal number that car dealerships use to calculate the finance charges. This number is not an interest rate but is somewhat analogous to interest rates. Some lease dealers may publicize the money factor, while others may not. You should ask for the money factor that your dealer is using. Also ask how the money factor is used to calculate the finance fee charged on your lease.

3. Ask the dealer to show you the calculation worksheet. The dealer is not required to share with you the calculations that go into the finance charge and monthly payments on your leased vehicle. Unless you ask specifically, you will probably never see that information. You should ask the dealer, sales clerk or manager to share the calculations with you. Even if you have the individual bits of data, you may not be able to confirm that the figures were calculated accurately or fairly unless you compare your notes to the dealer’s calculations.

4. Threaten to leave if the dealer is not forthcoming with information. The only leverage you have in the negotiations over a leased vehicle’s finance charges is the ability to walk away. Make it clear to the dealer that you want to verify the calculations and the individual pieces of information that go into figuring your finance charges. If the dealer is unwilling to share this information with you, you should threaten to leave and lease your car from somewhere else.

Tips.

If the lease dealership will not provide you with the money factor, go to a different dealer. You cannot determine and compare your true costs and fair value unless you have this information.

The higher the car value at lease end (that is, less depreciation), the less your finance charges will be, which, in turn, will reduce your monthly payment.

Warnings

Some dealers may present the money factor number so that it is easier to read, such as 3.33; however, this could be misinterpreted as the interest rate. Be aware that this is not the rate that will be used. This number should be converted to the actual money factor by dividing by 1,000 (3.33 divided by 1,000 = 0.00333).

Be aware that the finance cost (as calculated here to be $133.20) is not necessarily your total monthly payment. It is only the finance charge and may not include other charges such as sales tax or the acquisition fee.

Things You'll Need : Net cap cost, Residual cost, Money factor, Paper, Pen or pencil, Calculator.

December 19, 2019

How to Calculate Finance Charges on a New Car Loan

How to Calculate Finance Charges on a New Car Loan.

While some people save until they can buy a car in full, most people take out a car loan. This makes newer and better cars more accessible to everyone. However, it also makes car ownership even more expensive in the long run. Before taking out a loan, you should consider the additional money you will pay in interest for the duration of your loan. These payments, also known as finance charges, will be included in your payments and can be calculated either as monthly payments or as a sum total over the life of your loan.

Part 1 Clarifying the Terms of Your Loan.

1. Determine how much you will borrow. Typically, buyers will make a cash down payment on their new car and borrow from a lender to cover the remaining cost. This borrowed amount, known as the principal, will serve as the basis for your car loan. Keep in mind that you should put as much money down on your car as possible to minimize the amount borrowed and reduce your finance charges.

This step will require you to know roughly how much your new car will cost. See How to Buy a New Car for more information about finding a good price and working within your budget.

2. Figure out the annual percentage rate (APR) and duration of your loan. The APR reflects how much additional money you will have to pay beyond your principal for each year of your loan. A low APR will reduce the yearly and monthly amounts of finance charges on your loan. However, many low-APR loans are longer in duration, so the overall cost may remain relatively high. Alternately, a short-term loan with a higher APR may end up being cheaper overall. This is why it is important to calculate your finance charges beforehand.

Getting a low APR on your car loan may mean seeking other lenders beyond your car dealership. Be sure to do your research and select the cheapest available combination of APR and duration. See How to Get a Low APR on a Car Loan for more information.

3. Find out how many payments you will make each year. The majority of car loan payments are made on a monthly basis. When calculating your monthly payments, you will need to know both how many payments you will make each year and how many payments you will make in total. This information can be easily found in the terms of your car loan.

Part 2 Calculating Your Monthly Finance Charges.

1. Save time by using an online calculator. There are many car loan payment calculators available for free online. Take advantage of these free services if you don't want to spend the time calculating your payments yourself. Search "Car loan payment calculator" and you will be provided with many options. If you still want to work it out by hand, continue to the next step.

2. Find your interest rate due on each payment. Start by converting your APR to a decimal by dividing it by 100. For example, if your APR is stated at 8.4%, 8.4/100 = 0.084. Next, find your monthly percentage rate by dividing your APR decimal by 12. So, 0.084/12 = 0.007. This is your monthly percentage rate expressed as a decimal.

3. Multiply your monthly percentage rate times your principal. If, for example, your principal were $20,000 (if you borrowed $20,000 to buy your car), you would multiply this by 0.007 (from the previous step) and get 140.

4. Input this number into the monthly payment formula. The formula is as follows: Monthly Payment = (Interest rate due on each payment x principal)/ (1 – (1 + Interest rate due on each payment)^ -(Number of payments)). The top part of the equation (interest rate due on each payment x principal) is your number from the previous step. The rest can be calculated using a simple calculator.

The "^" indicates that the figure (-(Number of Payments)) is an exponent to the figure (1 + Interest rate due on each payment). On a calculator, this is entered by calculating 1 + interest rate due on each payment, hitting the button x^y, and then entering the number of payments. Keep in mind that the number of payments is made negative here (multiplied by negative one).

In our example, the calculation would go as follows (assuming a loan duration of 5 years or 60 months):

Monthly Payment = (0.007 x $20000)/(1-(1+ 0.007)^-60.

Monthly payment = $140/(1-(1.007)^-60).

Monthly payment = $140/(1-0.658).

Monthly payment = $140/0.342.

Monthly payment = $409.36 (this number may be off by a few cents due to rounding).

5. Calculate the amount of principal paid each month. This is done by simply dividing your principal amount by the duration of your loan in months. For our example, this would be $20,000/60 months = $333.33/month.

6. Subtract your principal paid each month from your monthly payment. In our example, this would be $409.36 - $333.33. This equals roughly $76. So, with this loan agreement, you would be spending $76 per month in interest payments alone.

Part 3 Calculating Your Loan's Total Finance Charges.

1. Find your monthly payment. To find your total finance charges over the life of your loan, start by calculating your monthly payment. How to do this is explained in the previous section.

2. Plug that number into the total finance charges formula. The formula is as follows: Monthly Payment Amount x Number of Payments – Amount Borrowed = Total Amount of Finance Charges.

So, in our example, this would be.

$409 x 60 - $20,000 = Total amount of finance charges.

$24,540 - $20,000 = Total amount of finance charges.

Total amount of finance charges = $4,540.

3. Check your work. To be sure that you calculated your total correctly, divide that number by the total number of payments (60, in this case). $4,540/60 = 76. If the result matches your monthly finance charges you calculated earlier, then you have the correct number for total finance charges.

Tips.

Use this process to compare loan plans to ensure that you end up with the lowest possible value for overall finance charges.

Using an online loan calculator will always be simpler and more convenient than working out the numbers on your own. These online calculators are always accurate.

The calculator included on most smartphones is capable of doing the math here. If you don't have a smart phone or calculator to use, try typing your equation into Google's search bar, as it will solve most simple problems.

With good credit and a large down payment, it may be possible to get a car loan with 0% APR.

Warnings.

While uncommon, some lenders can use a more complicated form of interest called compound interest that will throw off these calculations. Be sure to ask if your car loan charges simple interest (the kind described in this article) before counting on these equations.

November 28, 2019

How to Reduce Finance Charges on a Car Loan

How to Reduce Finance Charges on a Car Loan.

Finance charges applied to a car loan are the actual charges for the cost of borrowing the money needed to purchase your car. The finance charge that is associated with your car loan is directly contingent upon three variables: loan amount, interest rate, and loan term. Modifying any or all of these variables will change the amount of finance charges you will pay for the loan. There are a number of ways to reduce finance charges on a loan, and the method you choose will be contingent upon whether you already have a loan or are taking out a new loan. Knowing your options can help you save money and pay off your vehicle faster.

Method 1 Reducing Finance Charges for a New Loan.

1. Learn your credit score. Automobile loans are largely determined by the borrower's credit score; the better the borrower's credit score is, the lower his interest rate will likely be. Knowing your credit score before you apply for an automobile loan can help ensure that you get the best possible loan terms. You can obtain a free copy of your credit report (one free copy is guaranteed every 12 months) by visiting AnnualCreditReport.com or by calling 1-877-322-8228.

Your credit report won't explicitly contain your credit score, but it will contain information that determines your credit score. Because of this, it's tremendously important to review all of the information contained in your credit report and understand what determines your credit score to ensure that there are no errors.

If your credit score is low, you may need to improve your credit score. Improving your credit score will likely get you much better terms on your loan. If you can hold off on purchasing your vehicle until you've repaired your credit, it may be worth waiting.

Consider contacting a credit counseling organization to help you rebuild your credit. A credit counselor can work with you to build and stick to a budget, and can even help you manage your income and your debts. You can find a credit counseling organization near you by searching online - just be clear on the terms and fees of the services offered before signing up with a credit counselor.

2. Shop around for your loan. Most dealerships offer automobile loans at the dealership, which can make it convenient for buyers. However, the dealership may not be offering the best available loan. Many automobile dealers arrange loans by acting as a "middle man" between you and a bank, which means that the dealership may charge you extra to compensate for its services. Even if the dealership's fees aren't unreasonable, it's likely that the dealer will then sell your contract to a bank, credit union, or finance company, and you may end up making payments to that third party. Even if you end up going with the dealer's financing option, it's worth shopping around for a better loan from a local bank or credit union.

3. Don't take out a small loan. Every loan term is different, depending on factors like your credit score and the amount you're requesting to borrow. Smaller loans typically have very high monthly finance charges, because the bank makes money off of these charges and they know that a smaller loan will be paid off more quickly. If you intend to take out an auto loan for only a few thousand dollars, it may be worth saving up until you have the whole amount that you'll need to purchase an automobile, or purchasing an automobile that fits in your available price range.

4. Get a pre-approved loan before you buy a car. Pre-approved loans are arranged in advance with a bank or financial institution. This may be helpful, as many people feel pressured to go with the loan options that a dealer offers at the car lot, and end up getting a loan with high finance charges. If you get a pre-approved loan beforehand, you'll know exactly how much you can afford to spend on an automobile, which will also help you stay within your budget.

5. Consider leasing instead of buying. Leasing a vehicle allows you to use your vehicle for an arranged duration of time and a predetermined number of miles. You won't own your car, but lease payments are typically lower than what the monthly payments on a loan would be for the exact same vehicle. Some lease terms also give you the option of purchasing your vehicle at the end of the leasing period. Before you decide to lease, it may be helpful to consider.

the lease costs at the beginning, middle, and end of the leasing period.

what leasing offers and terms are available to you.

how long you want to keep the automobile.

Method 2 Refinancing an Existing Loan.

1. Contact your lender. You can apply to refinance your automobile loan with the lender from the original loan, or you can switch to a new lender. Lenders who allow refinancing will replace your existing loan with a new loan, typically offering lower monthly finance charges. Not every lender will allow borrowers to refinance a loan, so it may be worth comparing your options to determine which lender to go with, or whether you're eligible to refinance at all.

2. Gather the necessary information. As part of the refinancing application process, you'll need some basic information to provide the lender. Before you apply to refinance your loan, you'll need to have ready:

your current interest rate.

how much money is still owed on the existing loan.

how many months remain in the existing loan's terms.

the make, model, and current odometer reading of your vehicle.

the current value of your vehicle.

your current income and employment history.

your current credit score.

3. Compare refinance loan options. If you are eligible for an automobile loan refinance with your existing lender, you may be eligible for a better loan through a different lending institution. It's worth comparing your refinance loan options to get the best available loan terms. When you search around and compare refinance options, it's worth considering:

the loan rate.

the duration of the loan.

whether there are pre-payment penalties or late payment penalties.

any fees or finance charges.

what (if any) the conditions for automobile repossession are with a given lender.

Method 3 Pre-paying an Existing Loan.

1. Learn whether you're able to pre-pay your loan. If refinancing isn't an option, you may be eligible for pre-paying your loan. Pre-payment, also called early loan payoff, simply means that you pay off your debt before the agreed-upon end date of an existing loan.[29] The benefit of pre-paying your loan is that you're not subjected to the monthly finance charges you would otherwise be paying on your loan, but for that reason many lenders charge a pre-payment penalty or fee.[30] The terms of your existing loan should specify whether there is any pre-payment or early loan payoff penalty, but if you're unsure you can always consult with your lender.

2. Learn the pre-payment process for your lender. If your lender permits you to make pre-payments on your loan, there may be a special process for making those payments. These payments are sometimes referred to as principal-only payments, and it's important to specify to your lender that you intend for that payment to be applied to the principal loan, not the finance charges for upcoming months. Each lender's process may be different, so it's best to call or email the lender's customer service department and ask what you need to do to make a principal-only payment towards your loan.

3. Calculate your early loan payoff amount. There are many early loan payoff "calculators" available online, but all of them factor in the same basic information to determine how much you will need to pay in order to payoff your loan early:

the total number of months in your existing loan term.

the number of months remaining on your existing loan.

the amount your existing loan was for.

the monthly payments remaining on your loan.

the current annual interest rate (APR) on your existing loan.

Tips.

Reducing the finance charges by reducing the term of the loan will lower the finance charges overall but it will also increase your monthly payment, because you take less time to repay the loan.

Consider working with a credit counseling organization if you're having trouble sticking with your budget or paying off your loans.

November 28, 2019

how to calculate finance charges on a new car loan

How to Calculate Finance Charges on a New Car Loan.

While some people save until they can buy a car in full, most people take out a car loan. This makes newer and better cars more accessible to everyone. However, it also makes car ownership even more expensive in the long run. Before taking out a loan, you should consider the additional money you will pay in interest for the duration of your loan. These payments, also known as finance charges, will be included in your payments and can be calculated either as monthly payments or as a sum total over the life of your loan.

Part 1 Clarifying the Terms of Your Loan.

1. Determine how much you will borrow. Typically, buyers will make a cash down payment on their new car and borrow from a lender to cover the remaining cost. This borrowed amount, known as the principal, will serve as the basis for your car loan. Keep in mind that you should put as much money down on your car as possible to minimize the amount borrowed and reduce your finance charges.

This step will require you to know roughly how much your new car will cost. See How to Buy a New Car for more information about finding a good price and working within your budget.

2. Figure out the annual percentage rate (APR) and duration of your loan. The APR reflects how much additional money you will have to pay beyond your principal for each year of your loan. A low APR will reduce the yearly and monthly amounts of finance charges on your loan. However, many low-APR loans are longer in duration, so the overall cost may remain relatively high. Alternately, a short-term loan with a higher APR may end up being cheaper overall. This is why it is important to calculate your finance charges beforehand.

Getting a low APR on your car loan may mean seeking other lenders beyond your car dealership. Be sure to do your research and select the cheapest available combination of APR and duration. See How to Get a Low APR on a Car Loan for more information.

3. Find out how many payments you will make each year. The majority of car loan payments are made on a monthly basis. When calculating your monthly payments, you will need to know both how many payments you will make each year and how many payments you will make in total. This information can be easily found in the terms of your car loan.

Part 2 Calculating Your Monthly Finance Charges.

1. Save time by using an online calculator. There are many car loan payment calculators available for free online. Take advantage of these free services if you don't want to spend the time calculating your payments yourself. Search "Car loan payment calculator" and you will be provided with many options. If you still want to work it out by hand, continue to the next step.

2. Find your interest rate due on each payment. Start by converting your APR to a decimal by dividing it by 100. For example, if your APR is stated at 8.4%, 8.4/100 = 0.084. Next, find your monthly percentage rate by dividing your APR decimal by 12. So, 0.084/12 = 0.007. This is your monthly percentage rate expressed as a decimal.

3. Multiply your monthly percentage rate times your principal. If, for example, your principal were $20,000 (if you borrowed $20,000 to buy your car), you would multiply this by 0.007 (from the previous step) and get 140.

4. Input this number into the monthly payment formula. The formula is as follows: Monthly Payment = (Interest rate due on each payment x principal)/ (1 – (1 + Interest rate due on each payment)^ -(Number of payments)). The top part of the equation (interest rate due on each payment x principal) is your number from the previous step. The rest can be calculated using a simple calculator.

The "^" indicates that the figure (-(Number of Payments)) is an exponent to the figure (1 + Interest rate due on each payment). On a calculator, this is entered by calculating 1 + interest rate due on each payment, hitting the button x^y, and then entering the number of payments. Keep in mind that the number of payments is made negative here (multiplied by negative one).

In our example, the calculation would go as follows (assuming a loan duration of 5 years or 60 months):

Monthly Payment = (0.007 x $20000)/(1-(1+ 0.007)^-60.

Monthly payment = $140/(1-(1.007)^-60).

Monthly payment = $140/(1-0.658).

Monthly payment = $140/0.342.

Monthly payment = $409.36 (this number may be off by a few cents due to rounding).

5. Calculate the amount of principal paid each month. This is done by simply dividing your principal amount by the duration of your loan in months. For our example, this would be $20,000/60 months = $333.33/month.

6. Subtract your principal paid each month from your monthly payment. In our example, this would be $409.36 - $333.33. This equals roughly $76. So, with this loan agreement, you would be spending $76 per month in interest payments alone.

Part 3 Calculating Your Loan's Total Finance Charges.

1. Find your monthly payment. To find your total finance charges over the life of your loan, start by calculating your monthly payment. How to do this is explained in the previous section.

2. Plug that number into the total finance charges formula. The formula is as follows: Monthly Payment Amount x Number of Payments – Amount Borrowed = Total Amount of Finance Charges.

So, in our example, this would be.

$409 x 60 - $20,000 = Total amount of finance charges.

$24,540 - $20,000 = Total amount of finance charges.

Total amount of finance charges = $4,540.

3. Check your work. To be sure that you calculated your total correctly, divide that number by the total number of payments (60, in this case). $4,540/60 = 76. If the result matches your monthly finance charges you calculated earlier, then you have the correct number for total finance charges.

Tips.

Use this process to compare loan plans to ensure that you end up with the lowest possible value for overall finance charges.

Using an online loan calculator will always be simpler and more convenient than working out the numbers on your own. These online calculators are always accurate.

The calculator included on most smartphones is capable of doing the math here. If you don't have a smart phone or calculator to use, try typing your equation into Google's search bar, as it will solve most simple problems.

With good credit and a large down payment, it may be possible to get a car loan with 0% APR.

Warnings.

While uncommon, some lenders can use a more complicated form of interest called compound interest that will throw off these calculations. Be sure to ask if your car loan charges simple interest (the kind described in this article) before counting on these equations.

November 28, 2019

how to reduce finance charges on a car loan

How to Reduce Finance Charges on a Car Loan.

Finance charges applied to a car loan are the actual charges for the cost of borrowing the money needed to purchase your car. The finance charge that is associated with your car loan is directly contingent upon three variables: loan amount, interest rate, and loan term. Modifying any or all of these variables will change the amount of finance charges you will pay for the loan. There are a number of ways to reduce finance charges on a loan, and the method you choose will be contingent upon whether you already have a loan or are taking out a new loan. Knowing your options can help you save money and pay off your vehicle faster.

Method 1 Reducing Finance Charges for a New Loan.

1. Learn your credit score. Automobile loans are largely determined by the borrower's credit score; the better the borrower's credit score is, the lower his interest rate will likely be. Knowing your credit score before you apply for an automobile loan can help ensure that you get the best possible loan terms. You can obtain a free copy of your credit report (one free copy is guaranteed every 12 months) by visiting AnnualCreditReport.com or by calling 1-877-322-8228.

Your credit report won't explicitly contain your credit score, but it will contain information that determines your credit score. Because of this, it's tremendously important to review all of the information contained in your credit report and understand what determines your credit score to ensure that there are no errors.

If your credit score is low, you may need to improve your credit score. Improving your credit score will likely get you much better terms on your loan. If you can hold off on purchasing your vehicle until you've repaired your credit, it may be worth waiting.

Consider contacting a credit counseling organization to help you rebuild your credit. A credit counselor can work with you to build and stick to a budget, and can even help you manage your income and your debts. You can find a credit counseling organization near you by searching online - just be clear on the terms and fees of the services offered before signing up with a credit counselor.

2. Shop around for your loan. Most dealerships offer automobile loans at the dealership, which can make it convenient for buyers. However, the dealership may not be offering the best available loan. Many automobile dealers arrange loans by acting as a "middle man" between you and a bank, which means that the dealership may charge you extra to compensate for its services. Even if the dealership's fees aren't unreasonable, it's likely that the dealer will then sell your contract to a bank, credit union, or finance company, and you may end up making payments to that third party. Even if you end up going with the dealer's financing option, it's worth shopping around for a better loan from a local bank or credit union.

3. Don't take out a small loan. Every loan term is different, depending on factors like your credit score and the amount you're requesting to borrow. Smaller loans typically have very high monthly finance charges, because the bank makes money off of these charges and they know that a smaller loan will be paid off more quickly. If you intend to take out an auto loan for only a few thousand dollars, it may be worth saving up until you have the whole amount that you'll need to purchase an automobile, or purchasing an automobile that fits in your available price range.

4. Get a pre-approved loan before you buy a car. Pre-approved loans are arranged in advance with a bank or financial institution. This may be helpful, as many people feel pressured to go with the loan options that a dealer offers at the car lot, and end up getting a loan with high finance charges. If you get a pre-approved loan beforehand, you'll know exactly how much you can afford to spend on an automobile, which will also help you stay within your budget.

5. Consider leasing instead of buying. Leasing a vehicle allows you to use your vehicle for an arranged duration of time and a predetermined number of miles. You won't own your car, but lease payments are typically lower than what the monthly payments on a loan would be for the exact same vehicle. Some lease terms also give you the option of purchasing your vehicle at the end of the leasing period. Before you decide to lease, it may be helpful to consider.

the lease costs at the beginning, middle, and end of the leasing period.

what leasing offers and terms are available to you.

how long you want to keep the automobile.

Method 2 Refinancing an Existing Loan.

1. Contact your lender. You can apply to refinance your automobile loan with the lender from the original loan, or you can switch to a new lender. Lenders who allow refinancing will replace your existing loan with a new loan, typically offering lower monthly finance charges. Not every lender will allow borrowers to refinance a loan, so it may be worth comparing your options to determine which lender to go with, or whether you're eligible to refinance at all.

2. Gather the necessary information. As part of the refinancing application process, you'll need some basic information to provide the lender. Before you apply to refinance your loan, you'll need to have ready:

your current interest rate.

how much money is still owed on the existing loan.

how many months remain in the existing loan's terms.

the make, model, and current odometer reading of your vehicle.

the current value of your vehicle.

your current income and employment history.

your current credit score.

3. Compare refinance loan options. If you are eligible for an automobile loan refinance with your existing lender, you may be eligible for a better loan through a different lending institution. It's worth comparing your refinance loan options to get the best available loan terms. When you search around and compare refinance options, it's worth considering:

the loan rate.

the duration of the loan.

whether there are pre-payment penalties or late payment penalties.

any fees or finance charges.

what (if any) the conditions for automobile repossession are with a given lender.

Method 3 Pre-paying an Existing Loan.

1. Learn whether you're able to pre-pay your loan. If refinancing isn't an option, you may be eligible for pre-paying your loan. Pre-payment, also called early loan payoff, simply means that you pay off your debt before the agreed-upon end date of an existing loan.[29] The benefit of pre-paying your loan is that you're not subjected to the monthly finance charges you would otherwise be paying on your loan, but for that reason many lenders charge a pre-payment penalty or fee.[30] The terms of your existing loan should specify whether there is any pre-payment or early loan payoff penalty, but if you're unsure you can always consult with your lender.

2. Learn the pre-payment process for your lender. If your lender permits you to make pre-payments on your loan, there may be a special process for making those payments. These payments are sometimes referred to as principal-only payments, and it's important to specify to your lender that you intend for that payment to be applied to the principal loan, not the finance charges for upcoming months. Each lender's process may be different, so it's best to call or email the lender's customer service department and ask what you need to do to make a principal-only payment towards your loan.

3. Calculate your early loan payoff amount. There are many early loan payoff "calculators" available online, but all of them factor in the same basic information to determine how much you will need to pay in order to payoff your loan early:

the total number of months in your existing loan term.

the number of months remaining on your existing loan.

the amount your existing loan was for.

the monthly payments remaining on your loan.

the current annual interest rate (APR) on your existing loan.

Tips.

Reducing the finance charges by reducing the term of the loan will lower the finance charges overall but it will also increase your monthly payment, because you take less time to repay the loan.

Consider working with a credit counseling organization if you're having trouble sticking with your budget or paying off your loans.

November 26, 2019

How to Easy Finance a Car

How to Easy Finance a Car.

You’ve found the car of your dreams. Now what do you do? How do you get the money for it? When an individual decides to buy a new or used car, he or she often needs to finance part of or all of the vehicle’s price. Because cars are such a big purchase, many buyers can't provide cash down for the vehicle, so they choose to finance a car over a period of time. There are two financing routes you can choose to go down — either getting a direct or a dealer loan. Before you choose to finance your next vehicle, you should do your homework to ensure that you get the best deal.


Method 1 Doing Your Homework.

Find out how much you can afford up front. If you know the ballpark value of what you want to pay for a vehicle, and how much you can afford to pay in cash, you will know about how much you will need to finance.

Maximize your down payment. A smart way to finance a car is to get as much of a down payment as you can. The more you can pay at the beginning of a deal, the less you will have to pay in interest. Even if you have to temporarily sell some assets to buy the car outright, that can be a better deal than financing a major portion of the cost.

Know your credit score. Much of the financing offer for a car is based on your credit score. Those with good credit will get better interest rates and cheaper car financing offers. This is important no matter who you finance your vehicle through.

Find out your credit score either through the dealer or online at websites like www.annualcreditreport.com, www.freecreditscore.com, www.creditkarma.com, or www.myfico.com.

If your credit score is higher than 680, you are considered a prime borrower and are eligible for the best interest rates available. The higher your score, the better bargaining position you will be in.

Compare loan rates online. There are many websites that compare deals at no cost. Additionally, it is a great way to get in contact with various companies.

Get the necessary materials together. Most lenders will want your name, social security number, date of birth, previous and current addresses, occupation, proof of income, and information on other outstanding debts.


Method 2 Getting a Direct Loan.

Contact certified lenders. Local and national banks, as well as credit unions can give you the terms and interest rates they are offering on used car loans over the phone and online. Shop around and find the best rate for you. You don't have to apply for financing through the dealer, though you certainly can. Oftentimes you can get a fairer deal when you figure out your financing first before you walk into the dealership. Apply for financing through a bank or an app that connects you to lenders.

Oftentimes, credit unions have the lowest interest rates, especially if you are a member. Check with your employer to see if they have any connections with local credit unions for you to take advantage of.

Many lenders offer 5 year loans on vehicles that are five years old at most. Older vehicles are often only eligible for 1 to 2 year loans. In many cases, the fear is that an older car will break down and then borrowers will default on their loans.

Additionally, lenders often impose mileage restrictions (often 100,000 miles) and will not finance salvage-titled vehicles. Typically, they will only fund loans for vehicles purchased through a franchised dealership, not through a private party or independent dealer. In these cases, you’ll have to get a deal loan. See below.

Solicit rate quotes from several lenders. The interest rates offered on used car loans are generally 4 to 6 percent higher than rates offered on new car loans. This is because lenders are fearful of financing used vehicles.

Be as specific as possible with a lender. Provide the lender with information about the vehicle you choose. You will need to provide the car's make, model and VIN number, among other things. The more detail you can give the lender, the more firm your rate quote will be.

Talk to lenders about any fees or extra charges. Some lenders offer low interest rates and make back the money by tacking on additional fees and charges to a loan deal. You'll want to know about these, as well as any other specific loan agreement aspects like prepayment penalties, which can trigger fees if you pay the loan off early.

Get prequalified. Fill out the paperwork ahead of time. Many banks or lenders will pre-qualify you for a car loan based on your credit score, the type of car you plan on purchasing, and your driving history.

Ask the lender with the best rate offer for a pre-qualification letter. It should outline the terms and conditions of the loan. Bring this letter with you to the dealership when shopping for the car. When you go to the dealer's lot, you can show them evidence pre-qualification from a reputable lender. This will expedite the car buying experience. It will also tell the car dealer you are ready to buy.

If you haven’t prequalified, you can get financing at the dealer's lot for a one-stop shopping experience, but having other lender alternatives helps you to get the best deal.


Method 3 Getting a Dealer Loan.

Get a loan through a new or used car dealer.

In general, interest rates offered by dealerships are higher than interest rates you can find directly from a lender. In many cases, smaller dealerships work with third party lenders to finance your vehicle. Because they play the middleman, they pass off the costs to you. Therefore, you may want to apply for a direct loan first and cut out the dealership middleman.

In some cases, financing lenders like local banks and credit unions won’t take a chance on used cars. For used cars, most dealers will finance used cars they sell, regardless of its age. Therefore, you may want to apply for a dealer loan if a direct lender denies you financing.

Bring leverage. Bring interest rates from direct loan lenders, even if you plan on financing with the dealer. Dealers are more likely to offer lower interest rates, if you show them that you know what other lenders are offering. Make sure you research competitive interest rates based on your credit score.

Offer a down payment in cash or trade equivalent to at least 10% of the vehicle's purchase price. The larger the down payment, the less money you will have to finance and the less interest you’ll have to pay on that loan.

Tips.

If you have a low credit score, consider asking someone with a high credit score to co-sign on a loan. A co-signor with a high credit score may help you to secure a lower-interest loan.

If your loan application gets rejected, don’t feel bad. Most likely, the lender doesn’t think you are able to pay back the loan on time. Reassess your budget and try again or try a different lender.

Warnings.

If you finance a used car, be prepared to pay for comprehensive insurance on the vehicle, which is more expensive than collision insurance commonly applied to used cars. Lenders require that you carry comprehensive insurance to protect their investment. Lenders often fear that if you damage the car, you will default on the loan, so they make you take out better insurance.

Be wary of dealers who advertise financing with "no credit check." Typically, these car lots sell high-mileage vehicles with inflated down payments and interest rates.

November 22, 2019