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Thread: TSP Loan Rate

  1. #25

    Join Date
    Feb 2007
    Location
    San Diego, CA
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    6,952

    Default Re: TSP Loan Rate

    Interest Rate: The current interest rate for new loans is 3.250%, which is the current G Fund interest rate.

    Don't know when it "officially" changed.....

    I think TSP'ers need to be notified of the change somehow automatically!
    THIS IS WHERE I WOULD PUT SOMETHING TO REPRESENT MY THINKING, BUT THEN THEY SHOW UP!
    Tracker =
    100%- I Fund

  2.  
  3. #26

    Join Date
    May 2008
    Location
    Utah
    Posts
    1,991

    Default Re: TSP Loan Rate

    Quote Originally Posted by Frixxxx View Post
    I reviewed a loan from a coworker and he was paying 600 a month to meet his minimum payment on a credit card.

    We looked at the new bill and I showed him in 2 years at 6 month he could pay off his bill now.

    He would have paid 600/month for 30 years if he paid the credit cards level.

    He wins....saved him about 30K and he's debt free if he doesn't use the card for two years.....

    Oh, and I had him up his tax-deferred contribution to the 5% to get the max matching.....he's taking home more this year.....
    I always knew you were a sweetie. Good job!

  4.  
  5. #27

    Join Date
    Feb 2007
    Location
    San Diego, CA
    Posts
    6,952

    Default Re: TSP Loan Rate

    Quote Originally Posted by XL-entLady View Post
    I always knew you were a sweetie. Good job!
    Thank you, got to learn them uneducated masses.

    BTW, he watches the SS now...Thanks Coolhand!
    THIS IS WHERE I WOULD PUT SOMETHING TO REPRESENT MY THINKING, BUT THEN THEY SHOW UP!
    Tracker =
    100%- I Fund


  6.  
  7. #28

    Join Date
    Feb 2007
    Location
    San Diego, CA
    Posts
    6,952

    Default Re: TSP Loan Rate

    Interest Rate: The current interest rate for new loans is 3.250%, which is the current G Fund interest rate.

    No change as of 1 Jun!
    THIS IS WHERE I WOULD PUT SOMETHING TO REPRESENT MY THINKING, BUT THEN THEY SHOW UP!
    Tracker =
    100%- I Fund

  8.  
  9. #29

    Join Date
    Feb 2007
    Location
    San Diego, CA
    Posts
    6,952

    Default Re: TSP Loan Rate

    Interest Rate: The current interest rate for new loans is 2.875%, which is the current G Fund interest rate.

    But Jun 3rd has a change!
    THIS IS WHERE I WOULD PUT SOMETHING TO REPRESENT MY THINKING, BUT THEN THEY SHOW UP!
    Tracker =
    100%- I Fund

  10.  
  11. #30

    Join Date
    Dec 2007
    Location
    inland Northwest
    Posts
    4,102

    Default Re: TSP Loan Rate

    Wow Frixxxx, that is quite a drop in rate! People in Europe panicking or something?
    "life can only be understood backwards, but it must be lived forwards" - soren kierkegaard

  12.  
  13. #31

    Join Date
    Feb 2007
    Location
    San Diego, CA
    Posts
    6,952

    Default Re: TSP Loan Rate

    Interest Rate: The current interest rate for new loans is 2.625%, which is the current G Fund interest rate.

    Anyone need a loan or re-amortize?

    Wow!
    THIS IS WHERE I WOULD PUT SOMETHING TO REPRESENT MY THINKING, BUT THEN THEY SHOW UP!
    Tracker =
    100%- I Fund

  14.  
  15. #32

    Join Date
    Jul 2007
    Location
    Europe
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    7,844
    Blog Entries
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    Default Re: TSP Loan Rate

    Quote Originally Posted by Frixxxx View Post
    Interest Rate: The current interest rate for new loans is 2.625%, which is the current G Fund interest rate.

    Anyone need a loan or re-amortize?

    Wow!
    Thanks Frixxxx, I do like the updates because I tend to forget to check the website. When I realize the G-Fund rate is so low, I do take that into account when considering my next allocation.

  16.  
  17. #33

    Join Date
    Feb 2007
    Location
    San Diego, CA
    Posts
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    Default Re: TSP Loan Rate

    Quote Originally Posted by JTH View Post
    Thanks Frixxxx, I do like the updates because I tend to forget to check the website. When I realize the G-Fund rate is so low, I do take that into account when considering my next allocation.
    That's why Tom pays me the BIG BUCKS!!!
    THIS IS WHERE I WOULD PUT SOMETHING TO REPRESENT MY THINKING, BUT THEN THEY SHOW UP!
    Tracker =
    100%- I Fund

  18.  
  19. #34

    Default Re: TSP Loan Rate

    I have no idea if anyone will really see this post buried in the G Fund thread, but here goes...

    Every once in a while, I check out the TSP Loan rate out of curiosity. I've used it in formulas to compare investments/loans in Excel. But a couple times, I've used the TSP Loan calculator on the TSP site to see how much the biweekly payments are. Every time, the payment they show is different than the payment I calculate in Excel. I can get it dead on when I use Excel to calculate mortgage payments, but it never goes right with the TSP Loan. I've searched and searched and I just can't quite figure out how it works.

    Here's an example:

    Currently, the TSP calculator (here) says the rate is 2.625%. I plug in $10,000, 5 years payed off biweekly (26 times a year).

    It comes up with 130 payments at $83.00 each, with a total in payments equaling $10,790 - an interest payment of $790 by the end.

    now in Excel...

    I must be doing something wrong in my formulas, but the only way to get the payment and total interest to match is to use a rate of 3.0586%

    I use the PMT formula in excel. The syntax of PMT is:

    PMT(rate, number of periods, present value, [future value], [type])

    future value and type are optional. I usually leave them out, but I've tried using them to no avail.

    For rate, I use the quoted rate divided by 26 (.02625/26)

    For the number of periods, I use 26 * years. In this case, it's 26 *5 = 130 payments. That matches up with TSP calculator.

    Present Value is $10,000 in this case.

    If I plug those numbers in, I get 130 payments of $82.12, with a total of payments equaling $10,675.60. That's $114.40 less than what the TSP site calculates. The only way I can make it equal is to plug in a percentage of 3.0586%

    I've tried online loan calculators and it is the same thing. I'm guessing the TSP must be doing some strange rate calculations, but I just can't figure it out. Has anyone else noticed this or do you see where I'm going wrong???

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  21. #35

    Default Re: TSP Loan Rate

    I have been using this "what's missing" calculator for years (http://www.hughchou.org/calc/missing.cgi) and get what you get.



    Quote Originally Posted by fabijo View Post
    I have no idea if anyone will really see this post buried in the G Fund thread, but here goes...
    By the way, I moved this thread out of the G-fund forum and into a new sub-forum called "TSP Loans" under the TSP News forum.

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  23. #36

    Default Re: TSP Loan Rate

    Thanks, Tom. I wonder what strange accounting method the TSP is using then. Maybe I'll have to call them to find out what they are doing.


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