Left_Blank
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Hi everyone, quick technical question about commercial loans...
Lets say I take out a 10 year loan with weekly repayments. My first repayment is on the 1st Jan 2010.
Thus we would assume that my last repayment will be on the 1st Jan 2020.
There are 3652 days between these two dates (including the first day and excluding the last day). Since I repay weekly, I make a repayment every 7 days.
3652/7 = 521.7142857
Now I can't make that many payments unless I go 0.714 of the way to the bank one time but never actually get there
So what happens? The way I see it, there are two options:
1) I make 521 payments and then a smaller repayment on the very last day to finish off the loan.
2) I make exactly 521 payments where each repayment will be a tiny bit larger than they would be in option 1 above.
Anyway, what I'm hoping is that someone with experience in commercial loans could tell me how this works in the real world and if it varies from lender to lender?
Thank you.
Lets say I take out a 10 year loan with weekly repayments. My first repayment is on the 1st Jan 2010.
Thus we would assume that my last repayment will be on the 1st Jan 2020.
There are 3652 days between these two dates (including the first day and excluding the last day). Since I repay weekly, I make a repayment every 7 days.
3652/7 = 521.7142857
Now I can't make that many payments unless I go 0.714 of the way to the bank one time but never actually get there
So what happens? The way I see it, there are two options:
1) I make 521 payments and then a smaller repayment on the very last day to finish off the loan.
2) I make exactly 521 payments where each repayment will be a tiny bit larger than they would be in option 1 above.
Anyway, what I'm hoping is that someone with experience in commercial loans could tell me how this works in the real world and if it varies from lender to lender?
Thank you.