Early Repayment pushing up fees to an equivalent 2.15%
I just work out that because of early repayments, the fees charged by Harmoney works out to an equivalent 2.15% instead of 1.25%.
Some background:
Invested for about 6 months and now well over 1000 loans (minimal amounts each).
Say my total repayments received up to now - interest and capital (without early repayment) - is $X. The total fees I have paid if expressed as a percentage of that $X works out to be 2.15%.
As a note to the earlier posts on fees being less than 1.25% in total.
If you take your total fees and divide it by the total of "capital repayments" and interest, it will be less than 1.25%.
This is because "capital repayments" not only includes the genuine early repayments (where the 1.25% applies) but also those loans where the borrower changes his/her mind after getting it filled (we do not pay fees on these).
Investors' love for lending company fading
Early Repayment pushing up fees to an equivalent 2.65%
Quote:
Originally Posted by
Cool Bear
I just work out that because of early repayments, the fees charged by Harmoney works out to an equivalent 2.15% instead of 1.25%.
Some background:
Invested for about 6 months and now well over 1000 loans (minimal amounts each).
Say my total repayments received up to now - interest and capital (without early repayment) - is $X. The total fees I have paid if expressed as a percentage of that $X works out to be 2.15%.
As a note to the earlier posts on fees being less than 1.25% in total.
If you take your total fees and divide it by the total of "capital repayments" and interest, it will be less than 1.25%.
This is because "capital repayments" not only includes the genuine early repayments (where the 1.25% applies) but also those loans where the borrower changes his/her mind after getting it filled (we do not pay fees on these).
I posted the above on 10 November. I just decided to put in a formula into my spreadsheet to automatically estimate the impact of early repayment and it is now showing fees to be 2.65% (after 7 months invested) on the actual amount of interest and repayment (without early repayments). I sincerely hope that it will not go too high or the returns will be reduced drastically. At the moment, it is still okay.
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RAV at 14.57%, abt 1400 loans
wow you guys with above 15% RAR are doing well. I have about 1400 loans (about 5 months to 6 months invested) and well spread out. Changed my criteria as I went about 3 times. Now trying for a normal distribution curve. My RAV is 14.57%. According to my own spreadsheet it should be 16.4%. But that is whittled down mostly with the service fees for the early repayments. As mentioned in my earlier post, the service fee is now an equivalent of about 2.5% instead of 1.25%
I worked out the slow increase in equivalent fees from one month to another earlier when I was in the office and will post it here later.
I am slowing down committing more funds as I do not want to risk too much too soon - I think a clearer picture will emerge after at least 18 months of investing
Little free utility program
Hi I'm a newbie to the forum, but I've been investing in Harmoney nearly a year now. Been frustrated with the inability to get reasonable statements off the dashboard, so I've come up with a work-around that might be of interest to others.
It's a little program that allows you too load in successive downloaded loans.csv files, and then just extracts and highlights the differences - see below. These can then be saved to a new csv filethat's hopefully more useful :).
If anyone wants a copy - I'm making it freeware - just PM or eMail me. As it's free, it's a case of all care, no responsibility - it seems to work OK for me....
Attachment 7781
Cheers Dave