If you are not the type to research and invest on your own you may want to leave your money in the TSP account. If your investment mix is doing well there is really no need to change it. The fees are low. Make sure you know all your options in regards to the TSP and withdrawal options, at what age, etc.

If you are the type to research and invest on your own then you may want to consider rolling it over into a Rollover IRA. If you invest/manage it yourself you can save on fees and you will have many more investment options.

My husband is a gray area retiree and we chose to do a rollover of his TSP when he retired from the military back in 2017. We have no regrets and are quite happy with how things have turned out in our investment accounts because I researched before investing and I actively monitor/manage our accounts to keep them on track. He personally has no interest or desire to learn about investing.

People get into trouble when they do a rollover and they really are not the type to do the research in order to self manage their accounts. Do your due diligence.

Good luck with whichever path your choose.

They actually obtained almost $60,000 from the bank and this is the remainder that they need.

The numbers you gave look self-contradictory to me, but assuming that your APR is around 6% and loan amount is 160400, in the first year you have 160400*0.06= 9,624 of interest. Divide it by 12 month and we have €802 in interest in a month. As you can see, vast majority of your €900 payment goes to interest and almost nothing to repay your loan in the first year. That's why it takes 38 years to repay it. As you payed back almost nothing in the first year, the situation would be almost the same in the next year. In theory you can have interest equal to your payment, your loan will be perpetual and you'll pay infinitely more for interest than loan itself.

If you want to pay less for interest, you need to shorten the term of the loan by either borrowing less, or by repaying more.

Disclosure: my calculations are "back of an envelope" and sloppy and probably not exactly how your bank calculates the interest. It's for demonstration purpose only.

Edit: typos.

Just FYI you should realize that most businesses fail, and fail quickly. If a bank isn't willing to take a risk on their business, I don't think you should be either. There is zero guarantee they will be able to pay you back, and taking a family friend to court because they lost their business and can't pay you back is not going to make you feel all warm and fuzzy inside.

Exactly this.

Same, hope there’s a chance it goes up again

Thanks for the super detailed comment.

I'm lucky enough to be in a position where I can pay off a loan early, but from what I gathered, the bank in question will still charge you 38 years of interest, even if you pay it all back in say 20 years.

Not sure. People are obsessed with hard pull. Soft pull. Again credit is only important when you need to borrow money. Don’t this when you are applying for a mortgage if you are worried.

I do not know why they would need that, and I would ask them why they need that. You're holding all of the risk for this one, so you kinda call the shots.

Also, the usual advice is to not loan to family or friends, but it sounds like you're past that.

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The fact that they can't obtain a small business loan for $15,000 from a bank is concerning. I would look at the $15,000 loan as a gift - you may not get it back.

Edit: how well do you know them? Seems odd that you can't just ask them why they want your DL information.

Are they offering their driver's license information as well? It does seem odd, unless it's some sort of bank thing. Banks now require ID before you can open an account, but, unless they're planning to use your ID to open an account (red flag!), they normally wouldn't need your DL info

They don’t need your drivers license for any reason.

If the agreement needs notarized then the notary will want to see your drivers license to confirm your identity but the friend doesn’t need to see that.

They don't, that's why I was a bit confused. If you decide to pay back early, you still have to pay 38 years worth of interest.

Is it still a hard pull if you get a CL increase this way?

I just went to open one today at the 4.75 rate :(

And, as an added bonus, the majority of your mortgage payments goes toward the interest for the first 5-10 years. Note: typically additional payments or “overpayments” go directly to principal, but check your paperwork to verify

Why would you ask that? Go get another job.

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If you use a high amount, the score drops quickly, the day it's reported, but when you pay it off, it could take a few months to go back up because they don't know if the balance will stay low, you might charge to the limit again.

Also if you use near limit and pay in full each month several times in a 6 months period, that bank might raise the limit. But not if you usually keep the utilization low.

They need to see a pattern of high usage and full payment. But the credit report doesn't say that you paid in full because you keep a high balance.

What you could do is use high utilization every other month so the credit report shows that you are paying in full and charging more.

38 year amortization? Is that even a thing? I see you used EUR but that length seems insane to me when North America only somewhat recently started on doing 30 year loans.

Take a look at some early payment calculators too to play around with seeing what early payments can do to you for reducing interest paid to the bank and shortening the payoff period.

Personally I have a 25 year loan that I'm making some pretty aggressive extra principal payments against. When all is said and done the trajectory is that it'll be paid off in 18 years. Or we potentially have the option to "recast" our mortgage and lower payments (increasing total interest paid to the bank but decreasing pressure on us if things really go sideways).

Play around with this calculator to see how much you can save by doing extra principal payments https://www.calculator.net/mortgage-payoff-calculator.html

Note that this relies on the ability to make extra payments against the principal not prepaying for upcoming months.

These are the numbers I got playing with the calculator I linked above Loan 223k (250k - 27k downpayment) Term 38 years Interest 3.65%

Let's say you do an extra $100 a month, you could cut that down to 31 years of repayments and total interest paid to the bank is $149k which is less than the original 190k you would be giving the bank over those extra 7 years.

If you combine that with say an extra $1000 payment once a year you can shorten that even further to a repayment period of 27 years and only give the bank 127.6k in interest.

Financial deceit for your gain and at the expense of another is the legal definition of felony fraud. Maybe don't do that.

Most landlords will work with you, assuming you’ve been a good tenant and previously paid rent on time. It’s risky to try to replace a good tenant who may just be down on their luck for a couple of months. Talk to your landlord, see if they will accept partial payments while you find a new job

Sure. That’s the exact way interest works.

If you were lending somebody €250,000, you'd probably want more back than you lent them. It's the cost of borrowing the money; you're basically renting money from them. Like if you rent a car, it's not enough to give the car back when you're done renting it; you also have to pay money for the cost of renting it.

Have you looked at your amortization schedule? Have you looked at the escrow papers that show how much of your payment is going into escrow to cover taxes and insurance? All the information is in the paperwork.