What is a syndicated loan? What are its advantages anddisadvantages?

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: Type of CPM Loan?

A: Introduction: CPM refers to constant payment mortgage, this is nothing but an arrangement…

Q: Give and explain the factors that affect the interest rate on the loan

A: Following are the factors that affect interest rate on the loan:  1. Supply and Demand Interest…

Q: Define mezzanine loan?

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

Q: Define secured basis loan

A: Introduction: Loan is the amount that investors borrow for a given period of time. Farmers pay a set…

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: What is a mini-perm or bullet loan? When and why is this type of loan used?

A: Answer: Project development may be characterized as the process of designing, planning,…

Q: What is a mortgage REIT?

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

Q: Discuss the steps of loan structuring.

A: Loan structuring is defined as the components, which used to make the loan, like term loan, rate of…

Q: What is the difference between Direct and Indirect Financing?

A: Difference between direct financing and indirect financing are as follows

Q: What does “assignment” mean and why would a lender want to assign a mortgage loan?

A: Mortgage assignments refer to a document that shows that a mortgage is transferred from the original…

Q: From the borrower’s standpoint, what are the advantages and disadvantages ofsecuring a loan?

A: Secured loans means offering an asset or  property to the lender as a collateral against the funds…

Q: What is unsecured borrowing?

A: Definition:   Liabilities: The claims creditors have over assets or resources of a company are…

Q: What is the indifference point under the net present value? When would there be a discount on a…

A: SOLUTION- NET PRESENT VALUE = PRESENT VALUE OF CASH INFLOW - PRESENT VALUE OF CASH OUTFLOW.

Q: What are the advantages to borrowers and risks to lenders for each?

A: Borrowers are the people who borrows the money for any specific purpose. Borrowers pay some amount…

Q: What will be the Effect of the After-Tax Interest Cost on Loan Decisions?

A: Interest cost for loan borrowers depends mainly upon the rate of interest charged by lenders.…

Q: What is meant by a term-loan agreement?

A: A Loan Agreement, also known as a term loan, demand loan, or loan contract. It basically is a legal…

Q: What is the influence of the secondary mortgage market?

A: STEP 1: INTRODUCTION Secondary Mortgage market is the market where the buying and selling of…

Q: Explain Hybrid and Mortgage REITs?

A: Introduction: REITs enables a corporation to buy a real estate property using the collective…

Q: What is a buydown loan? What parties are usually involved in this kind of loan?

A: INTRODUCTION There are various mortgage financing techniques which helps to reduce cost for the…

Q: What is a loan amortization schedule, and what are some ways these schedules are used?

A: Loan Amortization Schedule- An amortization schedule is a table that provides the details of the…

Q: What types of loans does the IMF provide?

A: IMF refers to International Monetary Fund.It is an international organization that helps in the…

Q: Why would an investor-borrower want a participation loan?

A: SOLUTION:- Participation loan: it is a kind of loan in which lender participates in the net…

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: What is Secured Borrowing?

A:

Q: EXplain the loan structuring?

A: Loan restructuring is designing of loan according to the requirements of the borrower and also to…

Q: What are a few things to consider before you cosign a loan?

A: Cosigning a loan means that in case the borrower is unable to make the payments due on loan the…

Q: What is a compensating balance? What effect does a compensatingbalance requirement have on the…

A:

Q: What are the pros and cons of loaning?

A: Loaning is a process of lending money. An interest rate is charged by the lenders on the money lent…

Q: Which loan should Spike take and why?

A: Simple interest method is a method of computing interest on borrowed amount where interest is…

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: Explain the effective lending rate (ELR) and how it is derived?

A: ELR is generally used to know the true cost of lending. This concept is useful when be borrow money…

Q: Which of the following shows the timeline of the loan from the lender's perspective?

A: A lender is the one who lends to the other party. In return, the lender receives the sum with an…

Q: What is mortgage market?

A: A mortgage is a loan backed by some particular real estate property collateral.

Q: is the potential impact of long-term borrowing?

A: Long-term borrowings: Long term borrowings help companies to attain their long term financial…

Q: What is the meaning of Loan assumably?

A: Introduction: Assumable loan is nothing but a mortgage which can be passed to another party by the…

Q: What elements do each of the loans have in common?

A: LOAN -      A loan could be a sort of debt incurred by a personal or different entity. The…