Paying off ships early?
- Thread starter skyth
- Start date
far-trader
SOC-14 10K
The simple method is to treat it not so much as a loan or mortgage as a shares deal. The bank owns 480 shares in your ship when new. Each share is worth 1/240th of the new cost of the ship. You as the operator (hoping to be owner in 40 years or less) are required to buy one share a "month" from the bank at the face value of 1/240th of the new cost of the ship or face forfeiture of the ship and all your shares. If you're lucky in char gen you may have made a better deal where you get an older ship and assume a number of shares from the start. Probably from some other hopeful operator who couldn't make the payments.
So in the simple method to get "your" ship sooner you just buy shares quicker until you have all 480 of them.
So in the simple method to get "your" ship sooner you just buy shares quicker until you have all 480 of them.
I'm thinking that the bank would be willing to cut a deal on prepayment. Use the outstanding balance as a base line, and use Admin, Liaison, Legal etc to bargain down. It would be an over-simplification to say that 50% of the outstanding balance would be a zero-interest figure.
I would figure what 50% of the outstanding balance is, and figure that would too good a deal, but that and the 100% set up the bounds of the exercise.
A SWAG: take the outstanding balance, and subtract 4D6 percent, modified by Admin or other skills.
If the bank says no, you can use the money for something else in the mean time.
I would figure what 50% of the outstanding balance is, and figure that would too good a deal, but that and the 100% set up the bounds of the exercise.
A SWAG: take the outstanding balance, and subtract 4D6 percent, modified by Admin or other skills.
If the bank says no, you can use the money for something else in the mean time.
tbeard1999
SOC-14 1K
I find the ship shares systems to be a needless gloss. There are thousands of mortgage calculators out there (google "mortgage calculator") that can quickly give you the answer you need.
Option One:
Use a standard mortgage calculator. Google them. Here's one: http://www.ppar.com/amortization.htm
The "amount financed" or "loan amount" is 80% of the cost of the ship (Traveller financing requires a 20% down payment).
The annual interest rate is 3.98%. (EDITED)
Loan Term is 480 months.
Run an amortization schedule. Find the year that the PC's are in and presto, you have your balance.
Option Two:
Use my gnarly chart below:
EDIT: Chart revised. An expanded (monthly) chart is here: Part 1 http://www.travellerrpg.com/CotI/Discuss/showpost.php?p=299679&postcount=12
Part 2 http://www.travellerrpg.com/CotI/Discuss/showpost.php?p=299680&postcount=13
Code:
[U]Year Balance Value [/U]
1 0.79169 0.98961
2 0.78303 0.97879
3 0.77403 0.96754
4 0.76467 0.95583
5 0.75492 0.94365
6 0.74478 0.93097
7 0.73423 0.91778
8 0.72325 0.90406
9 0.71182 0.88978
10 0.69993 0.87492
11 0.68756 0.85945
12 0.67469 0.84336
13 0.66130 0.82662
14 0.64736 0.80920
15 0.63286 0.79108
16 0.61777 0.77222
17 0.60207 0.75259
18 0.58574 0.73217
19 0.56874 0.71092
20 0.55105 0.68882
21 0.53265 0.66581
22 0.51350 0.64187
23 0.49357 0.61697
24 0.47284 0.60000
25 0.45127 0.58333
26 0.42882 0.56667
27 0.40546 0.55000
28 0.38115 0.53333
29 0.35587 0.51667
30 0.32955 0.50000
31 0.30217 0.48333
32 0.27368 0.46667
33 0.24403 0.45000
34 0.21319 0.43333
35 0.18109 0.41667
36 0.14769 0.40000
37 0.11294 0.38333
38 0.07678 0.36667
39 0.03915 0.35000
40 0.00000 0.33333
50 - 0.28330
60 - 0.23330
70 - 0.15000"Balance" is the fraction of the ship's starting cost that is owed at the end of the year.
So, if your players want to pay off a ship at the end of year 30, multiply its starting cost by .32955 to get what's owed.
"Value" is the fraction of the ship's starting cost that a used ship of the indicated age will be worth on the retail market.
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far-trader
SOC-14 10K
Not quite. There is a 20% down payment requirement, but the financing is on the full 100% of the ship cost (possibly with the 10% standard design deduction in CT, 20% in HG, if applicable).
But certainly one can use your methods for more grittiness
I think my method more accurately reflects the meme of business as done in the OTU (where Starship loans are supposedly brutal and failure is rampant) and the gamist side of it where the players are supposed to have a hard time making the payments and have to resort to "adventures" now and then to make up the shortfall or lose their ship (and freedom to have "adventures"). And on those rare occasions when they find they have a nice little windfall, they should put it into stuff to make the ship more "adventurous" or to take some time off to pursue personal interests without being tied to working full time to make the payments.
I'm generally baffled when someone purports to be making money hand over fist. The rules don't make it that simple and easy in my opinion and experience. They weren't supposed to, at least not in early CT. I suspect corners being cut or rules being misinterpreted. Or the use of Book 7 :nonono:
But whatever works for their game is fine by me, it's just not my cup of tea. Might as well just give the players the ship free and clear if you're going to make it that easy. And no, I'm not advocating an "accountants in space" game either. A ship is the means to "adventure" imo.
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GypsyComet
SOC-14 1K
It was the advent of Broker skill in Book 6 that enabled mere PCs to control their monetary destiny. As long as the DM on the brokerage tables remains of mysterious nature (ie. no Broker skill available in chargen) the availability of brokerage DMs is a Referee thing. Once the PCs can modify that roll on their own, all bets are off.
far-trader
SOC-14 10K
Yes, Broker mostly. I'd forgotten (on purpose) that it was the otherwise great Book 6 Scouts that introduced it.
Scouts? Brokers?
o:Granted it was a long shot, but still. I don't allow Broker skill free reign in the hands of PCs. Too broken as is imo. I'd prefer it just not exist for PCs (unless they want to settle down on a planet and work in an office :smirk
Book 7 (S7 brain fart above corrected) didn't help by including Broker skill either.
But I've ranted enough
and I need some rest, feels like a flu bug coming on 
tbeard1999
SOC-14 1K
The "amount financed" that I referred to is what you put into the mortgage calculator. To replicate the terms of a CT starship loan, you input the 80% that you didn't pay down as the "amount financed".
And even in CT, it is correct to say that 80% is financed. What remains after the downpayment is, by definition, what is being financed.
far-trader
SOC-14 10K
From Book 2 - Quote (bold mine):
After a down payment of 20% of the cash price of the starship is
made, the shipyard will begin construction of a specific vessel. Upon completion, the vessel is delivered to the buyer, with the bank paying off the purchase price to the shipyard. Because the bank now holds title to the ship, the price must be paid off in a series of monthly payments to it. Standard terms involve the payment of 1/240th of the cash price each month for 480 months. In effect, interest and bank financing cost a simple 120% of the final cost of the ship, and the total financed price equals 220% of the cash purchase price, paid off over a period of 40 years.
tbeard1999
SOC-14 1K
"Total financed price," is not the same as "amount financed".
"Total financed price" is the total amount paid out by the borrower. It is (a) the cost of the ship (including down payment) plus (b) sum of all interest paid. (It's also a largely useless number, since it fails to take into account the time value of money**).
As stated previously, "amount financed" in the mortgage calculator has to be 80% of the total price to replicate the loan terms described by Book 2.
And by definition, "amount financed" is the purchase price less downpayment (and any other applicable offsets or additions (like loan origination fees)). It is the amount that the bank, er, finances. In a CT loan, this is 80% of the starship price.
**In other words "total financed price" could be the same for two loans that have very different economic costs. At best, "total financed price" gives some vague idea of the interest cost of financing.
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tbeard1999
SOC-14 1K
Revised Chart Pt. 1
Since CT has monthly payments, it makes more sense to express the payoff as a monthly amount. If you do this, the interest rate per month is 0.332%. The 5.22% interest rate I originally calculated was applicable to a single payment at the end of each year. So here's a revised monthly chart (with used starship values added):
(Continued in next post)
Since CT has monthly payments, it makes more sense to express the payoff as a monthly amount. If you do this, the interest rate per month is 0.332%. The 5.22% interest rate I originally calculated was applicable to a single payment at the end of each year. So here's a revised monthly chart (with used starship values added):
Code:
[U]Month Balance Value[/U]
1 0.79932 0.99915
2 0.79864 0.99830
3 0.79795 0.99744
4 0.79727 0.99658
5 0.79658 0.99572
6 0.79588 0.99486
7 0.79519 0.99399
8 0.79449 0.99312
9 0.79380 0.99224
10 0.79309 0.99137
11 0.79239 0.99049
12 0.79169 0.98961
13 0.79098 0.98872
14 0.79027 0.98783
15 0.78956 0.98694
16 0.78884 0.98605
17 0.78812 0.98515
18 0.78740 0.98425
19 0.78668 0.98335
20 0.78596 0.98245
21 0.78523 0.98154
22 0.78450 0.98063
23 0.78377 0.97971
24 0.78303 0.97879
25 0.78230 0.97787
26 0.78156 0.97695
27 0.78082 0.97602
28 0.78007 0.97509
29 0.77933 0.97416
30 0.77858 0.97322
31 0.77783 0.97228
32 0.77707 0.97134
33 0.77632 0.97040
34 0.77556 0.96945
35 0.77480 0.96850
36 0.77403 0.96754
37 0.77327 0.96658
38 0.77250 0.96562
39 0.77173 0.96466
40 0.77095 0.96369
41 0.77018 0.96272
42 0.76940 0.96174
43 0.76861 0.96077
44 0.76783 0.95979
45 0.76704 0.95880
46 0.76625 0.95782
47 0.76546 0.95683
48 0.76467 0.95583
49 0.76387 0.95484
50 0.76307 0.95384
51 0.76227 0.95283
52 0.76146 0.95183
53 0.76065 0.95081
54 0.75984 0.94980
55 0.75903 0.94878
56 0.75821 0.94776
57 0.75739 0.94674
58 0.75657 0.94571
59 0.75575 0.94468
60 0.75492 0.94365
61 0.75409 0.94261
62 0.75326 0.94157
63 0.75242 0.94053
64 0.75158 0.93948
65 0.75074 0.93843
66 0.74990 0.93737
67 0.74905 0.93632
68 0.74820 0.93525
69 0.74735 0.93419
70 0.74650 0.93312
71 0.74564 0.93205
72 0.74478 0.93097
73 0.74391 0.92989
74 0.74305 0.92881
75 0.74218 0.92772
76 0.74131 0.92663
77 0.74043 0.92554
78 0.73955 0.92444
79 0.73867 0.92334
80 0.73779 0.92224
81 0.73690 0.92113
82 0.73601 0.92002
83 0.73512 0.91890
84 0.73423 0.91778
85 0.73333 0.91666
86 0.73243 0.91553
87 0.73152 0.91440
88 0.73061 0.91327
89 0.72970 0.91213
90 0.72879 0.91099
91 0.72787 0.90984
92 0.72695 0.90869
93 0.72603 0.90754
94 0.72511 0.90638
95 0.72418 0.90522
96 0.72325 0.90406
97 0.72231 0.90289
98 0.72137 0.90172
99 0.72043 0.90054
100 0.71949 0.89936
101 0.71854 0.89818
102 0.71759 0.89699
103 0.71664 0.89580
104 0.71568 0.89460
105 0.71472 0.89340
106 0.71376 0.89220
107 0.71279 0.89099
108 0.71182 0.88978
109 0.71085 0.88856
110 0.70987 0.88734
111 0.70889 0.88612
112 0.70791 0.88489
113 0.70692 0.88366
114 0.70594 0.88242
115 0.70494 0.88118
116 0.70395 0.87993
117 0.70295 0.87869
118 0.70195 0.87743
119 0.70094 0.87618
120 0.69993 0.87492
121 0.69892 0.87365
122 0.69790 0.87238
123 0.69689 0.87111
124 0.69586 0.86983
125 0.69484 0.86855
126 0.69381 0.86726
127 0.69278 0.86597
128 0.69174 0.86468
129 0.69070 0.86338
130 0.68966 0.86207
131 0.68861 0.86077
132 0.68756 0.85945
133 0.68651 0.85814
134 0.68545 0.85682
135 0.68439 0.85549
136 0.68333 0.85416
137 0.68226 0.85283
138 0.68119 0.85149
139 0.68012 0.85015
140 0.67904 0.84880
141 0.67796 0.84745
142 0.67687 0.84609
143 0.67578 0.84473
144 0.67469 0.84336
145 0.67360 0.84199
146 0.67250 0.84062
147 0.67139 0.83924
148 0.67029 0.83786
149 0.66918 0.83647
150 0.66806 0.83508
151 0.66694 0.83368
152 0.66582 0.83228
153 0.66470 0.83087
154 0.66357 0.82946
155 0.66244 0.82804
156 0.66130 0.82662
157 0.66016 0.82520
158 0.65901 0.82377
159 0.65787 0.82233
160 0.65671 0.82089
161 0.65556 0.81945
162 0.65440 0.81800
163 0.65324 0.81655
164 0.65207 0.81509
165 0.65090 0.81362
166 0.64972 0.81216
167 0.64855 0.81068
168 0.64736 0.80920
169 0.64618 0.80772
170 0.64499 0.80623
171 0.64379 0.80474
172 0.64259 0.80324
173 0.64139 0.80174
174 0.64018 0.80023
175 0.63897 0.79872
176 0.63776 0.79720
177 0.63654 0.79568
178 0.63532 0.79415
179 0.63409 0.79262
180 0.63286 0.79108
181 0.63163 0.78953
182 0.63039 0.78799
183 0.62915 0.78643
184 0.62790 0.78487
185 0.62665 0.78331
186 0.62539 0.78174
187 0.62413 0.78017
188 0.62287 0.77859
189 0.62160 0.77700
190 0.62033 0.77541
191 0.61905 0.77382
192 0.61777 0.77222
193 0.61649 0.77061
194 0.61520 0.76900
195 0.61391 0.76738
196 0.61261 0.76576
197 0.61131 0.76414
198 0.61000 0.76250
199 0.60869 0.76086
200 0.60738 0.75922
201 0.60606 0.75757
202 0.60473 0.75592
203 0.60341 0.75426
204 0.60207 0.75259
205 0.60074 0.75092
206 0.59940 0.74925
207 0.59805 0.74756
208 0.59670 0.74588
209 0.59535 0.74418
210 0.59399 0.74248
211 0.59262 0.74078
212 0.59126 0.73907
213 0.58988 0.73735
214 0.58851 0.73563
215 0.58712 0.73391
216 0.58574 0.73217
217 0.58435 0.73043
218 0.58295 0.72869
219 0.58155 0.72694
220 0.58015 0.72518
221 0.57874 0.72342
222 0.57732 0.72165
223 0.57590 0.71988
224 0.57448 0.71810
225 0.57305 0.71632
226 0.57162 0.71453
227 0.57018 0.71273
228 0.56874 0.71092
229 0.56729 0.70912
230 0.56584 0.70730
231 0.56438 0.70548
232 0.56292 0.70365
233 0.56146 0.70182
234 0.55998 0.69998
235 0.55851 0.69814
236 0.55703 0.69628
237 0.55554 0.69443
238 0.55405 0.69256
239 0.55255 0.69069
240 0.55105 0.68882(Continued in next post)
Last edited:
tbeard1999
SOC-14 1K
Revised Chart, Pt. 2
"Balance" is the fraction of the ship's starting cost that is owed at the end of the month.
So, if your players want to pay off a ship at the end of month 360, multiply its starting cost by .32955 to get what's owed.
"Value" is the fraction of the ship's starting cost that a used ship of the indicated age will be worth on the retail market.
Code:
[U]Month Balance Value[/U]
241 0.54955 0.68693
242 0.54804 0.68505
243 0.54652 0.68315
244 0.54500 0.68125
245 0.54347 0.67934
246 0.54194 0.67743
247 0.54041 0.67551
248 0.53887 0.67358
249 0.53732 0.67165
250 0.53577 0.66971
251 0.53421 0.66776
252 0.53265 0.66581
253 0.53108 0.66385
254 0.52951 0.66189
255 0.52793 0.65992
256 0.52635 0.65794
257 0.52476 0.65595
258 0.52317 0.65396
259 0.52157 0.65196
260 0.51997 0.64996
261 0.51836 0.64795
262 0.51674 0.64593
263 0.51512 0.64391
264 0.51350 0.64187
265 0.51187 0.63984
266 0.51023 0.63779
267 0.50859 0.63574
268 0.50694 0.63368
269 0.50529 0.63162
270 0.50364 0.62954
271 0.50197 0.62747
272 0.50030 0.62538
273 0.49863 0.62329
274 0.49695 0.62119
275 0.49526 0.61908
276 0.49357 0.61697
277 0.49188 0.61528
278 0.49017 0.61389
279 0.48847 0.61250
280 0.48675 0.61111
281 0.48503 0.60972
282 0.48331 0.60833
283 0.48158 0.60694
284 0.47984 0.60556
285 0.47810 0.60417
286 0.47635 0.60278
287 0.47460 0.60139
288 0.47284 0.60000
289 0.47107 0.59861
290 0.46930 0.59722
291 0.46753 0.59583
292 0.46574 0.59444
293 0.46395 0.59306
294 0.46216 0.59167
295 0.46036 0.59028
296 0.45855 0.58889
297 0.45674 0.58750
298 0.45492 0.58611
299 0.45310 0.58472
300 0.45127 0.58333
301 0.44943 0.58194
302 0.44759 0.58056
303 0.44574 0.57917
304 0.44388 0.57778
305 0.44202 0.57639
306 0.44015 0.57500
307 0.43828 0.57361
308 0.43640 0.57222
309 0.43451 0.57083
310 0.43262 0.56944
311 0.43072 0.56806
312 0.42882 0.56667
313 0.42691 0.56528
314 0.42499 0.56389
315 0.42306 0.56250
316 0.42113 0.56111
317 0.41920 0.55972
318 0.41725 0.55833
319 0.41531 0.55694
320 0.41335 0.55556
321 0.41139 0.55417
322 0.40942 0.55278
323 0.40744 0.55139
324 0.40546 0.55000
325 0.40347 0.54861
326 0.40148 0.54722
327 0.39947 0.54583
328 0.39747 0.54444
329 0.39545 0.54306
330 0.39343 0.54167
331 0.39140 0.54028
332 0.38936 0.53889
333 0.38732 0.53750
334 0.38527 0.53611
335 0.38322 0.53472
336 0.38115 0.53333
337 0.37909 0.53194
338 0.37701 0.53056
339 0.37493 0.52917
340 0.37284 0.52778
341 0.37074 0.52639
342 0.36864 0.52500
343 0.36652 0.52361
344 0.36441 0.52222
345 0.36228 0.52083
346 0.36015 0.51944
347 0.35801 0.51806
348 0.35587 0.51667
349 0.35371 0.51528
350 0.35155 0.51389
351 0.34938 0.51250
352 0.34721 0.51111
353 0.34503 0.50972
354 0.34284 0.50833
355 0.34064 0.50694
356 0.33844 0.50556
357 0.33623 0.50417
358 0.33401 0.50278
359 0.33178 0.50139
360 0.32955 0.50000
361 0.32731 0.49861
362 0.32506 0.49722
363 0.32281 0.49583
364 0.32054 0.49444
365 0.31827 0.49306
366 0.31600 0.49167
367 0.31371 0.49028
368 0.31142 0.48889
369 0.30912 0.48750
370 0.30681 0.48611
371 0.30449 0.48472
372 0.30217 0.48333
373 0.29984 0.48194
374 0.29750 0.48056
375 0.29515 0.47917
376 0.29280 0.47778
377 0.29044 0.47639
378 0.28807 0.47500
379 0.28569 0.47361
380 0.28330 0.47222
381 0.28091 0.47083
382 0.27851 0.46944
383 0.27610 0.46806
384 0.27368 0.46667
385 0.27125 0.46528
386 0.26882 0.46389
387 0.26638 0.46250
388 0.26393 0.46111
389 0.26147 0.45972
390 0.25900 0.45833
391 0.25653 0.45694
392 0.25405 0.45556
393 0.25155 0.45417
394 0.24906 0.45278
395 0.24655 0.45139
396 0.24403 0.45000
397 0.24151 0.44861
398 0.23898 0.44722
399 0.23644 0.44583
400 0.23389 0.44444
401 0.23133 0.44306
402 0.22876 0.44167
403 0.22619 0.44028
404 0.22360 0.43889
405 0.22101 0.43750
406 0.21841 0.43611
407 0.21580 0.43472
408 0.21319 0.43333
409 0.21056 0.43194
410 0.20792 0.43056
411 0.20528 0.42917
412 0.20263 0.42778
413 0.19997 0.42639
414 0.19730 0.42500
415 0.19462 0.42361
416 0.19193 0.42222
417 0.18923 0.42083
418 0.18653 0.41944
419 0.18381 0.41806
420 0.18109 0.41667
421 0.17835 0.41528
422 0.17561 0.41389
423 0.17286 0.41250
424 0.17010 0.41111
425 0.16733 0.40972
426 0.16455 0.40833
427 0.16177 0.40694
428 0.15897 0.40556
429 0.15616 0.40417
430 0.15335 0.40278
431 0.15052 0.40139
432 0.14769 0.40000
433 0.14485 0.39861
434 0.14199 0.39722
435 0.13913 0.39583
436 0.13626 0.39444
437 0.13338 0.39306
438 0.13049 0.39167
439 0.12759 0.39028
440 0.12468 0.38889
441 0.12176 0.38750
442 0.11883 0.38611
443 0.11589 0.38472
444 0.11294 0.38333
445 0.10998 0.38194
446 0.10701 0.38056
447 0.10403 0.37917
448 0.10104 0.37778
449 0.09804 0.37639
450 0.09504 0.37500
451 0.09202 0.37361
452 0.08899 0.37222
453 0.08595 0.37083
454 0.08290 0.36944
455 0.07985 0.36806
456 0.07678 0.36667
457 0.07370 0.36528
458 0.07061 0.36389
459 0.06751 0.36250
460 0.06440 0.36111
461 0.06128 0.35972
462 0.05815 0.35833
463 0.05501 0.35694
464 0.05186 0.35556
465 0.04870 0.35417
466 0.04553 0.35278
467 0.04234 0.35139
468 0.03915 0.35000
469 0.03595 0.34861
470 0.03273 0.34722
471 0.02951 0.34583
472 0.02627 0.34444
473 0.02303 0.34306
474 0.01977 0.34167
475 0.01650 0.34028
476 0.01322 0.33889
477 0.00993 0.33750
478 0.00663 0.33611
479 0.00332 0.33472
480 0.00000 0.33333
600 - 0.28330
720 - 0.23330
840 - 0.15000"Balance" is the fraction of the ship's starting cost that is owed at the end of the month.
So, if your players want to pay off a ship at the end of month 360, multiply its starting cost by .32955 to get what's owed.
"Value" is the fraction of the ship's starting cost that a used ship of the indicated age will be worth on the retail market.
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In the world of no pre-payment penalties, tbeard1999 is absolutely right.
If you assume prepayment penalties, the picture is different. If (and there is nothing in canon to indicate otherwise) there is, in fact, no dejure right to avoid interest costs by pre-payment in the OTU, then the bank has the right to insist on every "crud" of their 220%. This may make as much sense as some of the other economic edicts in canon (i.e.: none save a response to imperial rules), but I believe it is the clearest interpretation. If the bank has a right to all the interest, they still have an incentive for prepayment in the time value of money. The question is how much of the interest do they bargain away.
If you assume prepayment penalties, the picture is different. If (and there is nothing in canon to indicate otherwise) there is, in fact, no dejure right to avoid interest costs by pre-payment in the OTU, then the bank has the right to insist on every "crud" of their 220%. This may make as much sense as some of the other economic edicts in canon (i.e.: none save a response to imperial rules), but I believe it is the clearest interpretation. If the bank has a right to all the interest, they still have an incentive for prepayment in the time value of money. The question is how much of the interest do they bargain away.
tbeard1999
SOC-14 1K
I personally doubt that such low interest, long-term loans would have pre-payment penalties. For one thing, the incredibly low interest rate implies almost no inflation (or deflation); the very long term (paired with a fixed interest rate) implies a very stable interest rate. In such a situation, lenders would have little incentive to offer loans with prepayment penalties. And in a reasonably free market economy like the Third Imperium, offering loans without prepayment penalties would be a competitive advantage for banks. So I'd expect this to be the standard loan.
Also, while nothing explicitely states that there's a right to payoff a loan, nothing explicitely prohibits it either. And since loans were common when Traveller was written, and typically allowed for prepayment, I think it's more reasonable to assume that CT loans look like regular late 20th century loans except where stated otherwise.
Generally, lenders will insist on prepayment penalties if (a) the interest rate on the loan at inception is higher than the prevailing interest rate at inception; or (b) the lender pays significant up-front costs to fund the loan.
But if you want them, simply assess a certain percentage of the remaining balance due (say 5%) as additional penalties.
It would also be a serious economic distortion if folks were prohibited from paying off loans early. For instance, this could make selling a starship before it was fully paid off nearly impossible. (And the higher the early loan payoff penalty, the harder it will be to sell a starship, since the buyer will have to do more than just "assume the payments"). The net effect of such loans would be to make them less common, which could have undesirable economic consequences.
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I like the idea of the 20% down payment as the pre-paid interest then base the montly on 100% of the ships cost over 40 years (480 Monthly payments). If someone wishes to pay off the ship early use the chart Tbeard used for the annual ship value (YES Tbeard is gnarly dude lol). If the characters balk at having to pay any extra that is the penalty. Yes it does simplify it but it works awesome. I did cut the chart off at year 39 for my games as if the characters want to pay it off with less then a year to go well sucks being them. they can pay a little more due to the banks extra paperwork at end of contract.
Peter Newman
SOC-12
If the bank holding your loan won't accept prepayment than all you have to is go to another bank and arrange for them to take over all your future payments in exchange for this pile of cash you'll give them. This should be just as good, unless you want to sell the ship.
tbeard1999
SOC-14 1K
Agreed. The presence of such easy workarounds is another factor that in my mind militates against prepayments being disallowed.
