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Presumably you'd have to pay back more than you get in the loan, right? Wouldn't your liability increase by more than a million dollars?
by ALittleLight 5y ago
Presumably you'd have to pay back more than you get in the loan, right? Wouldn't your liability increase by more than a million dollars?
- brewdad 5y agoNot until the interest accrues. You could (no idea why you would) borrow $1MM and immediately pay it back before owing any interest. You would need to reflect this on your books but nothing material has changed.
- thaumasiotes 5y ago> You could (no idea why you would) borrow $1MM and immediately pay it back before owing any interest. Can you in fact do that? It's possible with a residential mortgage in the US, because there are laws prohibiting prepayment penalties. And I think even those don't apply to refinanced mortgages?
- avianlyric 5y agoYes, just because it’s hard to find a lender that will except those terms doesn’t mean it’s not possible.