Allied First Bank Loans Officers

Question 1

What exactly is an "instalment loan"?

Answer

A installment loan is a loan where you borrow a certain amount of money and promise to repay it in monthly installments. It can be used for various purposes such as car purchase or home improvement or medical expenses, consolidation of debts, and for car purchases. An installment loan is typically lower than the credit card or personal loan. It also has flexible terms that can be altered according to your requirements. It's therefore a great option if you need to get a large amount of money and want to break up the payments into smaller, more manageable amounts. Allied First Bank Loans Officers.

Question 2

What is a Bridge Loan?

Answer

A bridge loan is short-term loan that is used to pay for the expenses of a downpayment for a new house or to fund the transition from one home to another. They are typically temporary and carry low interest rates. They can also be repayable quickly so that the borrower can enjoy lower rates in the long run. Bridge loans are also called swing loans, gap financing, or jump loans. Allied First Bank Officers.

Question 3

Who are micro lenders?

Answer

A micro lender is a financial institution which provides loans to individuals and small-sized businesses. Most often, the amount borrowed is lower than US$50,000. A majority of micro lenders serve entrepreneurs, as well as people with low incomes who might otherwise be able borrow from banks that are traditional. Since micro lenders are usually taking on greater risk since they offer loans to people who may not have the ability to pay back the loan, they charge the highest interest and fees. However, they can be a valuable source for entrepreneurs, as they can help entrepreneurs to get their company on the right track and expand. Allied First Officers.

Question 4

How do you calculate a loan's interest rate?

Answer

You will need to know the principal amount, the interest rate and the amount you'll have to pay. Divide the annual interest rate by 100 to convert it into a decimal. After that, multiply the decimal by the principal amount to find the annual rate of interest. Then, divide this amount by 12 to get the monthly interest. A $10,000 loan will have an annual rate of 8.8%. Your monthly interest payments will then be $83.33 (or $80 multiplied by 0.08 / 100 = $6.67 per Month. Allied First Bank Loans Officers.

Question 5

What is a loan amortization?

Answer

A amortization of a loan is the breakdown of all the payments you make on loans. An amortization plan will inform you the amount of your monthly installments go to interest and the rest towards principal over the life of the loan. You must be able to read and comprehend your amortization plan so you are aware of the amount of money you actually pay towards your loan, as well as when you will be debt-free. For instance, if you have a 30-year mortgage with a starting balance of $200,000, your amortization plan will show that your monthly payments will be $978. The 806 dollars are used to pay for interest and $172 is utilized for principal. This means that over the duration of Allied First Bank Officers.

Question 6

How much is pmi for an FHA mortgage loan?

Answer

There isn't a definitive answer to this question because it varies according to a variety of aspects, including the amount of loan, the down payment amount as well as the mortgage insurance company involved. A FHA loan is averaging pmi of 0.5%-1.0 percent annually. If you take a loan of $100,000, mortgage insurance could cost anything from $500 to $1000 per year. Allied First Officers.

Question 7

What is the PMI for the FHA loan?

Answer

This question doesn't have a definitive answer. The cost of pmi on an FHA loan will vary depending on the amount of the loan, the down payment amount, and the involvement of the mortgage insurance firm. On average pmi for an FHA loan is between 0.5% to 1.0% of the total loan amount every year. The cost could range from $500 to $1,000 annually to insure your mortgage in the event of an amount of $100,000. Allied First Bank Loans Officers.

Question 8

What exactly is an FHA loan?

Answer

An FHA loan is a type of mortgage which is insured by the Federal Housing Administration (FHA). FHA does not make loans. But, it does protect them. The FHA will pay the lender any losses if you default on the loan. An FHA loan has several advantages over conventional mortgages it's simpler to be eligible for an FHA loan than conventional mortgages. It is possible to get an FHA loan with an initial down payment as low as 3.5%. FHA loans generally have interest rates that are less than traditional mortgages. FHA loans are able to be used to buy houses even if you've got bad credit or have limited credit. Allied First Bank Officers.

Question 9

What exactly is an installment loan?

Answer

A loan you get for a set amount and pay back monthly in installments is called an installment loan. An installment loan can be used to buy automobiles and pay off debts, pay for home improvements and to consolidate debt. The interest rate for an installment loan is usually smaller than the personal loan or credit card. It also has flexibility in terms and can be adjusted according to your requirements. This is a fantastic option for people who have to borrow huge amounts of money, but wish to break the monthly installments into smaller, more manageable amounts. Allied First Officers.

Question 10

What is an fha loan?

Answer

FHA loans are mortgages that are covered by the Federal Housing Administration. FHA doesn't lend money; it is the insurer of them. FHA guarantees loans and will compensate lenders for any losses that they sustain if you default. FHA loans have several advantages over traditional mortgages. The first is that FHA loans are more easy to obtain than conventional mortgages. FHA loans are offered with an 3.5% down payment. FHA loans typically have lower interest rates than conventional mortgages. FHA loans can be used to purchase a house regardless of whether your credit rating is not perfect. Allied First Bank Loans Officers.