follow the bouncing ball
Hello. We owe $18,930.00 or so on a 2016 trailer. It has bunks but we now want a rear kitchen model. The rig we like is a 2017 selling for !8k or so. For kicks and giggles we went to dealer to look at...
Forum Discussion
CavemanCharlie wrote:
Soooo, you are taking out a long term loan, with a lower interest rate, then you are paying off (whatever) sooner without paying a penalty or without paying the whole rate of interest ?
Humm, I will have to give this some thought but, it sounds like we are setting ourselves up for another economic collapse.
The banks ; on there books ; think that they will have X number of dollars coming in over X number of years. If they don't get it because everyone pays off their loan early then that will be a problem.
But, I am not a economist. I am just thinking out loud.
Loans are discounted on the books to account for early payoff. If the loan actually does survive to maturity that is "found" money. The banks really don't care if you pay off early. That just makes the money available for another loan.
