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Author Topic: [-] Original Interest Rate on Loan Information Window  (Read 258 times)

BD

  • Former member
[-] Original Interest Rate on Loan Information Window
« on: October 26, 2013, 07:34:09 PM »
When expanding the Current Loans line item to show the Loan Information details, the only interest component of the weekly payment provided is Interest Margin.

It can be financially efficient to trade out (refinance) old loans at higher interest rates to newer ones at lower rates.  Without knowing the original interest rate along with the margin rate, that determination is somewhat more difficult.  

The history graph only goes back almost two years, so one cannot rely on that, as loan terms can be as much as six years.  Even if one could, it is manually intensive to correlate it all with the graph.

Perhaps it could be displayed similar to how the loan quote shows it.

Having that additional piece of information would make it easier to select candidates for refinance almost at a glance.  :o

« Last Edit: October 27, 2013, 01:06:28 PM by sami »

Offline Sanabas

  • Members
  • Posts: 2161
Re: Original Interest Rate on Loan Information Window
« Reply #1 on: October 27, 2013, 06:45:39 AM »
Interest rates aren't fixed, only the margin is. If global interest rates go up, so will the weekly payment on all your loans, so refinancing for a better interest rate is futile, it's only refinancing because your credit rating has improved/you can now fully secure your loans might save you a little.

BD

  • Former member
Re: Original Interest Rate on Loan Information Window
« Reply #2 on: October 27, 2013, 03:27:12 PM »
Interest rates aren't fixed, only the margin is. If global interest rates go up, so will the weekly payment on all your loans, so refinancing for a better interest rate is futile, it's only refinancing because your credit rating has improved/you can now fully secure your loans might save you a little.
Ok...variable rate loans....not clear from the screens, but that may be my mis-reading of the description.  ???

Explains the difficulty in trying to come up with a consistent calculation to base a refinance decision on.

Bottom line is that as one moves up the credit rating scale, only max of about three percentage points can be gained...not much to be had on old loans with small balances remaining.  The biggest advantage might be to free up more borrowing capacity from that asset, if it is within the max allowable to borrow.

Thanks for your reply!

 

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