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Commissioning Loans

S

SpookyMustang

Not a brown shoe...
I am looking for the best options that are out there with regards to commissioning loans. I am looking for both unsecured and auto loans.

I am quite familiar with USAA's options, but I wanted to know what else is out there...

Any suggestions?
 
SpookyMustang said:
I am looking for the best options that are out there with regards to commissioning loans. I am looking for both unsecured and auto loans.

I am quite familiar with USAA's options, but I wanted to know what else is out there...

Any suggestions?
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Navy Mutual Aid Association offers a 30 month $5,000 loan at a good rate--1.5-2 percent. The only catch is that you have to buy their insurance (and agree to pay by allotment) for as long as you are paying back the loan. The policy is similar to SGLI, but a little cheaper. Some people lower their SGLI to the minimum ($50,000) and have the NMA policy as their main life insurance.

-BB
 
Navy Fed is willing to do signature loans for new Commissionees but it isn't anywhere near as much $$$ or as low a rate as the USAA loans. Even if you don't need that $25K, it doesn't make sense to pass it up, put it in a savings account & earn the interest on it, you'd still make more than you're paying for it.
 
KimberlyD said:
Navy Fed is willing to do signature loans for new Commissionees but it isn't anywhere near as much $$$ or as low a rate as the USAA loans. Even if you don't need that $25K, it doesn't make sense to pass it up, put it in a savings account & earn the interest on it, you'd still make more than you're paying for it.
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Please tell me you are f*cking joking!!!

Extremely bad gouge. You will not make more in a savings account (common sense). Take the money you make now and ask someone other than on this message board on what to do with it. Oh yeah, and make sure they know what they are talking about.
 
Idiot!

Schmuck...you are an idiot...

Think about it stooge...if you are paying 2% interest on a loan and you are able to put the money from that loan into a savings account and draw MORE than 2% in interest...you will make money...

While you could make more money in an investment that provides better return than something just over 2%...Kim was just pointing out just how good a 2% interest rate on a loan really is...

Where is your common sense FOOL!

Kim...AmandaR says hello...
 
SpookyMustang said:
Schmuck...you are an idiot...

Think about it stooge...if you are paying 2% interest on a loan and you are able to put the money from that loan into a savings account and draw MORE than 2% in interest...you will make money...

While you could make more money in an investment that provides better return than something just over 2%...Kim was just pointing out just how good a 2% interest rate on a loan really is...

Where is your common sense FOOL!

Kim...AmandaR says hello...
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Concur. Many so called high interest rate savings accounts make > 2%. Mine at Capital One makes close to 4% and has no minimum deposit. While I don't necessarily recommend that every new commissionee go out and max out all their loan resources, these loans can be an opportunity to get yourself started until that JG or LT pay kicks in. Best advice I can give you is to take $10 and get yourself a subscription to Money Magazine, which is a great entry level resource on finances.

Brett
 
Brett's right...

I took 20K at 1% from USAA and 5K at 1.5 from NMA... put it in a money market returning about 3.5% and used it to feed an IRA, buy a car, pay off debt and help my mom out of a hole. The money I put into the IRA has been growing quite well. When I had money in the money market, it was growing as well.

Not only that, but paying off those two loans is boosting my quite horrid credit. The fact that I had a 1% loan on my credit record was my saving grace when I had to buy a new car.

Yeah, you don't have to take the whole thing, but the fact that I had it helped out quite a bit at times.
 
Thanks for helping me out there Spooky. Ofcourse we aren't just leaving ours in a savings account but even if we did, we would still make money, thanks for clarifying that for Schmuck. Tell Amanda I said hi.
 
These loans sound like a really sound deal. I have about $12,000 in student loans at close to 6% that I would love to pay off ASAP. When can we apply for these loans? Pre-OCS, during, after?

Thanks in advance!
 
These loans sound like a really sound deal. I have about $12,000 in student loans at close to 6% that I would love to pay off ASAP. When can we apply for these loans? Pre-OCS, during, after?

Thanks in advance!
 
The USAA loan can be applied for within 18 months of commissioning. If you are going to OCS, you can probably get the loan while you are there. If I were you, and I didn't already have an account with USAA, I would start one before you go to OCS so that all you have to do is call them and tell them you want the loan. They can just dump the cash into your account if you have the checking account setup already.
 
SpookyMustang said:
Schmuck...you are an idiot...Think about it stooge...
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:eek: :eek:

Hold on there Tonto. Get your facts straight. Also, watch the name calling, esp if you do not know who you are talking to. Just some friendly advice.

A. NavyFed has same program as USAA. At USNA they rotate, one year NFCU provides loans, Next USAA. Same amounts or near at last call.

B. Interest you pay on loan cannot be deducted from AGI for Tax purposes, and you will pay tax on interest you earn, state (if applicable) and Federal, ergo making 2% while paying 2% is a losing proposition.

C. Invest you say? Know many lads USNA Class of 2000 and 2001 that invested their loans in high flying stocks, made some money, but at the end of the day lost big time, yet still had to repay the loan. Hard times. Know one youngster who invested whole $25K. In 2002 portfolio worth about $7K.

D. NFCU currently offers a 5 year CD yeild 5.40APY. Makes a whole lot of sense to take that $25K and put it in a CD.

;) ;) ;)
 
:o You are right that I was probably a bit overzealous in my response...

With my rookie financial expertise, I would probably dump it into a mutual fund or high interest CD. I don't think that I would have dumped it into straight stocks...I am just not saavy enough and do not have the time to manage those types of funds...

That said...I would only expect forums such as this to provide some direction, I would never expect for someone to take what info is provided here as absolute truth. There are no short cuts and one must do their own homework.

Thanks for the looking out though...I do appreciate it...:icon_wink
 
Just an FYI - I called NFCU about 2 months ago regarding a commissioning loan and they said that they no longer had that program. I quizzed the man on the phone to make sure he knew what I was talking about and he said they did away with that program and at that time no other program was going to replace it.
 
^Yup. When I took my USAA Commissioning loan I shopped around at NFCU and others. Navy Fed had done away with it and that was August 2004, so it's been dead for a while. USAA rates are 3.59% by the way for the Commissioning loan.
 
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