If you plan to go to school once in America-watch out!

[Kez/JWolf 6]

zethris... I would like to ask you a personal question....

If you are in such a financial mess.... how do you think you are going to afford all the immigration fees that you are going to have to pay.... and how will you be able to sponsor your SO and afford to live once she is here????

Kezzie

[rebeccajo 14]

zethris... I would like to ask you a personal question....

If you are in such a financial mess.... how do you think you are going to afford all the immigration fees that you are going to have to pay.... and how will you be able to sponsor your SO and afford to live once she is here????

Kezzie

He won't. And he'll blame it all on someone else more priveledged.

[john_and_marlene 162]

zethris... I would like to ask you a personal question....

If you are in such a financial mess.... how do you think you are going to afford all the immigration fees that you are going to have to pay.... and how will you be able to sponsor your SO and afford to live once she is here????

Kezzie

...and how was he able to afford the trips overseas. ...and how is it that he can look for better accomodations for his fiance to the tune of $350/mo.?

... and since when are late payment fees random? Don't they only get tacked on when you miss payment dates?

[Jenn! 918]

Compounded interest, not capitalized.

Coumpouding happens with every loan. The longer you go without reducing the principal the more gets added to the balance.

Pay attention to what you are posting before you look even more foolish than you already do.

His use of the term "capitalized interest" was correct. It specifically refers to accrued interest being added to the principal when a monthly payment is insufficient to cover the interest portion of the payment. You may have heard of negative amortization.

[Kez/JWolf 6]

God I wish my rent was only $350 a month.... come live in Boston and see what you can rent for $350 per month.... I shed to keep a rabit in maybe... We have to pay $1900.00 per month for a small 2 bed townhouse...

Kezzie

[john_and_marlene 162]

God I wish my rent was only $350 a month.... come live in Boston and see what you can rent for $350 per month.... I shed to keep a rabit in maybe... We have to pay $1900.00 per month for a small 2 bed townhouse...

Kezzie

That's not what he'll pay here. That's how much he was looking to pay in the Philippines for rent for his fiancee in another thread. It seems to me he's making more bills when he's already unable to pay the ones he has.

[rebeccajo 14]

Compounded interest, not capitalized.

Coumpouding happens with every loan. The longer you go without reducing the principal the more gets added to the balance.

Pay attention to what you are posting before you look even more foolish than you already do.

His use of the term "capitalized interest" was correct. It specifically refers to accrued interest being added to the principal when a monthly payment is insufficient to cover the interest portion of the payment. You may have heard of negative amortization.

Capitalized Interest is interest that is not immediately expensed, but instead is treated as an asset and amortized over time in the income statement.

It's a process that was used in old 'rule of 78's' style lending that has been pretty much outlawed in most states.

*edited to add that upon googling *capitalized interest* I see the same definition Jenn gave*

Edited August 21, 2006 by rebeccajo

[john_and_marlene 162]

I guess that's part of the entitlement to a good life. All current concerns take priority over old bills.

[rebeccajo 14]

God I wish my rent was only $350 a month.... come live in Boston and see what you can rent for $350 per month.... I shed to keep a rabit in maybe... We have to pay $1900.00 per month for a small 2 bed townhouse...

Kezzie

That's not what he'll pay here. That's how much he was looking to pay in the Philippines for rent for his fiancee in another thread. It seems to me he's making more bills when he's already unable to pay the ones he has.

Or what happens when you finally locate a woman who buys into your bull$hit.

Edited August 21, 2006 by rebeccajo

[Jenn! 918]

Compounded interest, not capitalized.

Coumpouding happens with every loan. The longer you go without reducing the principal the more gets added to the balance.

Pay attention to what you are posting before you look even more foolish than you already do.

His use of the term "capitalized interest" was correct. It specifically refers to accrued interest being added to the principal when a monthly payment is insufficient to cover the interest portion of the payment. You may have heard of negative amortization.

I'm sorry Jenn but that is incorrect.

Capitalized Interest is interest that is not immediately expensed, but instead is treated as an asset and amortized over time in the income statement.

It's a process that was used in old 'rule of 78's' style lending that has been pretty much outlawed in most states.

I have to disagree. Here's a quick example of the use of capitalized interest in an educational loan nowadays: http://www.cfnc.org/paying/pubs/pdf/EXTRAr...22%20illegal%22

The definition that you gave of capitalized interest would be applicable to the lender, and not the borrower. From the borrower's eyes, loan principal is not an asset.

I quote from my Interest Theory textbook:

"It is possible that when a loan is amortized with varying payments, the interest due in a payment is larger than the total payment. In this case, the principal repaid would be negative and the outstanding loan balance would increase instead of decrease. The increase in the outstanding loan balance arises from interest deficiencies being capitalized and added to the amount of the loan."

[rebeccajo 14]

Compounded interest, not capitalized.

Coumpouding happens with every loan. The longer you go without reducing the principal the more gets added to the balance.

Pay attention to what you are posting before you look even more foolish than you already do.

His use of the term "capitalized interest" was correct. It specifically refers to accrued interest being added to the principal when a monthly payment is insufficient to cover the interest portion of the payment. You may have heard of negative amortization.

I'm sorry Jenn but that is incorrect.

Capitalized Interest is interest that is not immediately expensed, but instead is treated as an asset and amortized over time in the income statement.

It's a process that was used in old 'rule of 78's' style lending that has been pretty much outlawed in most states.

I have to disagree. Here's a quick example of the use of capitalized interest in an educational loan nowadays: http://www.cfnc.org/paying/pubs/pdf/EXTRAr...22%20illegal%22

The definition that you gave of capitalized interest would be applicable to the lender, and not the borrower. From the borrower's eyes, loan principal is not an asset.

I quote from my Interest Theory textbook:

"It is possible that when a loan is amortized with varying payments, the interest due in a payment is larger than the total payment. In this case, the principal repaid would be negative and the outstanding loan balance would increase instead of decrease. The increase in the outstanding loan balance arises from interest deficiencies being capitalized and added to the amount of the loan."

Yes and if you see my edited post I researched it a bit further as well and saw my initial response to you was wrong.

Back in the old days (about 20 years ago) we had capitalized loans in banking. We collected the interest for the month, no matter when the payment was made. And if payoff was made, we collected the full months interest - even if payoff was made on - say August 1.

Sorry for being trigger happy.

However, to me I don't see that as 'capitalized interest'. You effectively cannot increase the balance on a simple interest loan. If you don't pay towards the principal, then it simply doesn't go down. You can, however, still owe interest that you have not paid when it was due. In my mind that's not the same as what banks used to practice when they capitalized. Old style capitalization was pure financial rape in that you charged the borrower interest for a time period when they didn't owe the money. Capitalization, as I just read it on Google and as your textbook defines it, seems to me like just a overgrandized term for paying back what is rightly due to the lender.

[Jenn! 918]

Capitalization, as I just read it on Google and as your textbook defines it, seems to me like just a overgrandized term for paying back what is rightly due to the lender.

No argument there. It's standard practice.

[Kez/JWolf 6]

[Jenn! 918]

Capitalization, as I just read it on Google and as your textbook defines it, seems to me like just a overgrandized term for paying back what is rightly due to the lender.

No argument there. It's standard practice.

Just thought I'd mention that my own student loans did not capitalize my interest while I was in forbearance, which is why I got slammed with a $2,000 interest bill.

[gimygirl 0]