Discuss some of the most elementary terms used in fixed interest rate loans?

Q: How can we calculate an Effective Interest Rate Based on a Payment Period?

A: The effective annual rate of interest is the actual or the real rate of interest paid or received…

Q: Explain Second Mortgages and Shorter Maturities?

A: It is a type of mortgage loan which is similar to a mortgage loan which is tenable by a borrower's…

Q: What are the major differences between the four CPM loans? What are the advantages to borrowers and…

A: Constant Amortization Mortgage (CAM):   The first step is the calculation of a fixed or constant…

Q: Define mezzanine loan?

A: Mezzanine funding: Mezzanine funding is a type of funding that has together the characteristics of…

Q: Explain Determinants of Mortgage Interest Rates?

A: Following are the determinants of Mortgage Interest Rates: Credit score: Banks and HFCs see the…

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: Explain the Factors Important in Mortgage Loan Pricing?

A: Mortgage loan pricing: The process of analysis and arriving at the exact interest rate for a…

Q: Explain the addition to the interest rate, HELOC borrowers consider the issues?

A: Home buyers mostly take loans to buy the home and they will pay the debt in equated installments.…

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: Which interest rate is used on very short term loans from one bank to another? A. PRIME INTEREST…

A: The banks lend money to the general public, and can also lend money to one another (between banks),…

Q: What are some types  of current assets that are pledged as security for short-term loans?

A: A pledged asset is collateral pledged by a borrower to a lender (usually in return for a loan). The…

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 the term Fixed Interest Rate Mortgage (FRM) Loan?

A: Mortgage loans:   The mortgage is a type of loan in which a property or any other real estate is…

Q: Illustrate with examples , that Interest rate is equivalent to the savings rate from the deposits?

A: Interest received It is the amount that is received to a person for the investment made. A rate at…

Q: Explain the reason why the wraparound lender should be willing to make the loan at a rate that is…

A: Wraparound mortgage is a type of secondary financing in which the seller extends an additional…

Q: Explain GPM Mortgage Loans and Effective Borrowing Costs

A: Graduated-payment contract (GPM) loans: It may be a sort of fixed-rate mortgage in which…

Q: Explain Loan Closing Costs and Effective Borrowing Costs?

A: Closing costs are the uses that buyers and vendors ordinarily pay to total a real estate deal, over…

Q: Define the term the effective interest rate covering the payment period?

A: Interest rates can be of two types- Simple interest rate- This is the interest rate stated in the…

Q: Explain Mortgage pay-through bonds (MPTBs)?

A: A written agreement through which a lender gets the right to take the property that is put as a…

Q: How do inflationary expectations influence interest rates on mortgage loans?

A: Inflation: It is the rate at which the purchasing power of the money decreases every year.…

Q: Explain Subprime Mortgage-Backed Securities?

A: Mortgage-backed security: A mortgage-backed security is a kind of asset-backed security which is…

Q: Explain Fully Amortizing, Constant Payment Mortgage (CPM) Loans?

A: Answer: Fully amortizing: A fully amortizing payment applies to a form of annual debt repayment.…

Q: 1. How are interest rates determined? Discuss and explain the interest rate equation and its…

A: Interest rate can be defined as the price that lenders charge for lending their money to borrowers.…

Q: Write the different types of loans available?

A: Types of loans available as follows: Debt Consolidation Loans: A consolidation credit is intended to…

Q: Write some of the examples of commercial loans?

A: Following are the examples of commercial loans: Term loan: A term loan is an advance from a bank…

Q: how FHA buydown loans are structured?

A: Buydown loan is a type of loan in which lower interest rate is charged to the buyer. In such type…

Q: Explain Incremental Borrowing Cost versus a Second Mortgage?

A: The lenders offer different repayment terms of the same loan to the different borrowers. The term of…

Q: Define Amortized loans

A: Loan is an amount borrowed by an individual from an individual, company, bank or any financial…

Q: Explain ARM and Floating Rate Loans?

A: Adjustable-rate mortgage (ARM): It could be a kind of contract or mortgage where the coupon rate…

Q: Explain the Evolution of the Secondary Mortgage Market?

A: The secondary mortgage market is defined as a market created for the purpose and sale of existing…

Q: How are Effective Interest Rates calculated?

A: Effective interest rate is the interest earned on the investment or saving account.

Q: What are mortgage discount points?  When does it make sense to pay points on a loan?  How can a…

A: Mortgage discount point are all such points which will be reducing the total amount of fees which an…

Q: Explain ARMs and Floating Rate Loans?

A: Loan is referred as the amount which is borrowed from the financial institutions or individual at…

Q: sources of short-term financing and unsecured sources of short-term loans

A: Short-term financing is the credit or loan given to an enterprise for a period of less than one…

Q: Explain Reverse Annuity Mortgages (RAMs) loan?

A: Reverse Annuity Mortgage (RAMs): A reverse annuity mortgage is a kind of home loan in which an…

Q: What is SBA Loans

A: Loans- Business loans, also known as commercial loans, are a type of finance used to fund business…

Q: Explain the terms of Classification of Mortgage Loans?

A: Mortgage Loan     Mortgage means transfer of interest to immovable property in order to secure the…

Q: Explain Partially Amortizing, Constant Payment Mortgage (CPM) Loans with example?

A: Amortization can be defined as paying back of the loan amount in installments according to the…

Calculating the Return On A Loan