Money Lenders Not Brokers Bad Credit

Question 1

What is a discount point?

Answer

Discount points are an amount that a borrower must pay to the lender to receive a lower interest rate on loans. One point equals one percent of the amount of loan. So If you get a loan of $100,000 and pay two points then you'll have to pay the lender $2,000. Borrowers who wish to lock in a lower rate of interest on their loan can do so by using points. However, they can also increase the total cost of loan. Borrowers should not pay points if they believe they'll save more money over the loan's duration than they'll pay in points. Money Lenders Not Brokers Bad Credit.

Question 2

How can I remove PMI from an FHA loan?

Answer

There are a variety of ways to remove PMI from the FHA loan. A good way to remove PMI from an FHA loan is to have sufficient equity in your home. Another way is not to pay the loan balance below 78%. And finally, there's a program dubbed "Mortgagee Release" which allows mortgagees to discharge their PMI once they've paid down the mortgage balance to 80 percent of the property's initial value. lenders not brokers bad credit.

Question 3

What is the best type of collateral for personal loans?

Answer

A collateral for a personal loan could be a variety of assets like the car or home. Stocks and bonds are other alternatives. Before you begin the application process, it is important to consult with the lending institution about your options. Some lenders may be more flexible in relation to acceptable collateral. It is always best to discuss the options with the lender prior to you file your application. This will ensure that everyone is on the same page, and will avoid any unexpected surprises later. money lenders not brokers.

Question 4

What is a fixed-rate loan?

Answer

A fixed-rate loan is one where the interest rate will not change throughout the duration of the loan. Fixed-rate loans give borrowers the advantage of knowing precisely what they'll be paying each month and being capable of budgeting in line with this. A refinancing loan could be a better deal, but the borrower may not to get the most favorable interest rate. Money Lenders Not Brokers Bad Credit.

Question 5

What exactly is a payday loan?

Answer

A payday lender is a loan provider that offers short-term cash loans, lends cash to those who need immediate cash and have a high repayment potential. They are usually modest in value and have short repayment terms (usually between 2 and four weeks). These loans are a great option for those who require urgent cash but don't wish to put their credit score at risk or have poor credit. lenders not brokers bad credit.

Question 6

What is a great loan-to-value ratio?

Answer

A good loan-to-value ratio is lower than 80percent. This means that the lender contributes only 80percent of the cost of buying the property, and the borrower has to pay 20%. It is less likely for you than your counterparts to fail to pay your mortgage in the event that you have a lower ratio of loan-to-value. Lenders will be able in the event that you fail to pay your mortgage, to get more money from their investment by selling the property. money lenders not brokers.

Question 7

Who is a Micro lender?

Answer

Micro lenders are a financial institution that lends money to individuals or small companies, typically for less than US$50,000. They typically are entrepreneurs as well as those with low incomes, who may not be able to obtain traditional bank loans. Because they are more at risk lending to people who might not be able repay the loans, micro lenders usually charge high interest rates. However, micro lenders are a great resource for entrepreneurs as they help them to get their business up and running and growing. Money Lenders Not Brokers Bad Credit.

Question 8

What is a good loan-to-value ratio?

Answer

A good ratio for loan-to-value is anything below the 80% mark. This means that the lender is taking 80percent of the cost of buying the property, and the homeowner is responsible for the remaining 20 percent. There is a lower chance than other people to default on your mortgage in the event that you have a lower ratio of loan-to-value. In the event that you fail to pay your lender might be able to get more through the sale of your home. lenders not brokers bad credit.

Question 9

What is a loan to value?

Answer

A loan to value (LTV) refers to a term in mortgage lending which indicates the ratio between the loan amount and the cost of purchasing the property. LTV ratios are 50% as an example: A borrower may want to borrow $100,000 on an investment property that has a market price of $200,000, but the LTV would be only 50%. The lenders make use of LTV ratios as one factor in assessing a borrower's eligibility for a mortgage. LTV ratios are usually higher than the risk of lenders and can lead to an increase in interest rates. Certain lenders may offer loans with lower interest rates that have high LTV ratios, but this isn't the case. money lenders not brokers.

Question 10

How do you check the status of your loan?

Answer

There are several options available to verify your loan status. One is to call your lender to request a statement of account. A loan tracking program such as Loan Tracker Pro will provide the most current information regarding the loan, including the date of origination (interest rate), monthly payment amount and more. Money Lenders Not Brokers Bad Credit.