loopy #6035

The loan is specified as “The loan is principal and interest (30% residual)”. I don’t understand what that means.

What does “principal and interest” mean? Does it mean monthly loan payments will include both interest and principal repayments so that at the end of 3 years, all principal will have been repaid?

What does “30% residual” mean? Perhaps, at the end of 3 years, 30% of the original principal remains to be repaid?

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leotyndall #6051

Dear Loopy,

30% residual means that at the end of the loan, the borrower is required to pay the 30% of the amount lent to own the asset, otherwise we will resell the asset or refinance it to continue.

As an investor the loan will end at that time, and if there is a refinance you will have the option to continue but you do not need to accept.

A payment schedule will be issued on settlement and held on the listing for reference and your perusal.

We have also responded to your support ticket.

Marketlend

Reply

SamJames #6054

Hi Leo,

How does the 30% residual differ from a typical loan repayment schedule offered on Marketlend?

Is the borrower is paying interest on the full $60,000 (minus principal repayments) for the duration of the loan?

Reply

leotyndall #6055

The loan is paid with a principal and interest for 60,000, but to keep the payments affordable the principal deduction is only 42,000 during the loan and the remaining at the end

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