Can borrowers pay off part, or all, of loans any time that they desire?

Q: Finding the total interest of a loan is similar to finding the total interest in an annuity's

A: When you take a loan then you have to make payments towards the principal amount as well as towards…

Q: Why is it essential to know different kinds of loans?

A: A loan helps in determining the money supply and helps new businesses in the lending process. The…

Q: If a friend who’d never heard of amortization before asked you to explain how loan payments work,…

A: Amortization is a technique used in accounting to decrease the book value of such a loan or…

Q: What is a mortgage note?

A: Long-terms notes payable: Long-term notes payable represent a legal and written promise made by the…

Q: What Percentage of down- payment do you have to give to the bank when buying a mortgage

A: Down Payment : It is the Initial lump sum amount which the borrower pay before sanction of loan.…

Q: How do banks calculate the monthly payment on a loan?

A: Present value annuity formula is used to calculate the monthly payment on a loan. Here, The loan…

Q: 1. What is the market rate of interest at which the lender can loan proceeds if the borrower prepaid…

A: Market interest rate is the rate which is prevailing in the market at present.

Q: When might a borrower want to have another party assume his liability under a mortgage loan?

A: There are basically two conditions when a borrower might want to have a third party:

Q: Explain the Other characteristics of home equity loans?

A: A type of loan under which equity is used as collateral by the borrower is known as a home equity…

Q: How did you get the loan repayment and bank loan?

A: Bank Loan is a non-current liability of the business and it is borrowed to finance long term plans…

Q: How long-term deposit accounts benefit borrowers

A: A deposit account is an account that is held by the customers of a bank and financial institutions…

Q: What is a mortgage payable?

A: Long-Term LiabilitiesLong-term liabilities are the obligations of the business that need not be paid…

Q: (Remember to find the total amount paid over the life of the loan and subtract from house cost) What…

A: Loan Amortization: It is the process of paying the loan amount by making periodic payments by the…

Q: Describe a short-term financing option and discuss the advantages and disadvantages.  Is there a…

A: Short term financing: Any loan that is obtained for a short period of time is Short Term financing.…

Q: Which of the following are secured loans? (select all that apply) |student loans credit card debt |…

A: Secured loans are the loans which are backed by any asset of the borrower. In other words, if…

Q: If you were taking out a loan and the interest rate was the same either way, would you want it to be…

A: Simple interest is the interest payable on principal or borrowed amount only. Compound interest is…

Q: What is a mortgage REIT?

A: Answer: Mortgage REITs invests in mortgage and own land, loan capital to real estate owners for…

Q: For what items may a lender require escrow accounts from a borrower?

A: Escrow account is the third party account in which securities or assets are kept until the…

Q: The actual amount that is given to the borrower is called the after the loan has been discounted.

A: Basically a discounted loan has three components Discount Proceeds Maturity Value

Q: When would there be a discount on a loan? How about a premium?

A: The loan is purchased to finance the purchase of equipment, education purposes, the purchase of…

Q: Explain Restructuring the Mortgage Loan?

A: The mortgage loan restructuring option is generally considered by homeowners so that the loan…

Q: Why might a wraparound lender provide a wraparound loan at a lower rate than a new first mortgage?

A: Introduction: Wraparound mortgage is a type of loan in which loans are given to borrowers, who is…

Q: What are the Effects of Maturity on Monthly Payments on Fully Amortizing Loans?

A: In fully amortized loan, total loan will be paid off by end of maturity i.e. loan term. Monthly…

Q: What is meant by a “purchase-money” mortgage loan? When could a loan not be a purchase-money…

A: A purchase-money mortgage loan is a loan that home sellers provide to the buyers of the home. Buyers…

Q: Illustration the mortgage for future advances?

A: The question is based on the concept of mortgage or security used for line of credit for future…

Q: Calculate rebate on bills discounted?

A: When a customer who has bills recievable is facing liquidity issue he can approach bank inroder to…

Q: What are the 5 Cs of credit that are sometimes used by bankers and others to determine whether a…

A: While granting credit banks do analysis of that loan amount will be repaid without any problem.

Q: a. How many payments are required to settle the loan? payments Round up to the next payment b. What…

A: Loan: It represents a sum of the amount borrowed by the borrower from the lender. The borrower pays…

Q: What are the factors that you need to consider in applying for a loan? Why is it important to…

A: When applying for a loan one need to consider several factors at play. Some of them are quantitative…

Q: How does compound interest affect the loans you undertake? For example, how would this  affect…

A: Interest is an additional value which is charged on borrowed or deposited amount. Interest can be an…

Q: payments. What is her effective rate of interest?

A:

Q: nt stud

A: Introduction : In simple words, student loans refers to the amount borrowed by individuals to…

Q: What does it mean when a lender accelerates on a note? What is meant by forbearance?

A: Promissory note is written by the borrower and sent to the lender. In promissory note, borrower…

Q: Simple interest refers to interest on a loan computed as a percentage of the loan amount. Compound…

A: COMPOUND INTEREST IS CALCULATED ON THE PRINCIPAL AMOUNT AND ALSO ON THE ACCUMULATED INTEREST OF…

Q: True or false?  Interest received on loans made to borrowers is an example of an investing activity.

A: The investing activities of the cash flow statement record the amount incurred for purchasing the…

Q: What is the interest rate the borrower will pay after the first rate adjustment?

A: Data given: Start rate = 3.50% Maximum cap for the first year=3% MTA index at the end of the first…

Q: How long does it take you to eliminate the debt?

A: The debt refers to the financial instruments which are bought by investors, or corporations, or…

Q: Given the role of the loan originator in the securitization process of a mortgage loan described in…

A: Securitization: A process of combining various financial assets and then selling this pool to…

Q: How does a short term loan works?

A: Definition : A short term loan is a variety of loan that's obtained to support a short lived…

Q: The original amount of money in a loan transaction is known as what?

A: Introduction: A loan is nothing but an amount of money lent from one or more individuals or…

Q: How much of the first payment for the mortgage described in the table will go towards interest?

A: Mortgage Payment: It is the payment made on the loan and includes principal and interest payments.…

Q: What happens when a student loans defaults?

A: Student loan is referred to as the type of loan, which is actually designed for helping the student…