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Question 1

What is a Payday lender?

Answer

A payday lender is a lender of short-term cash loans, provides money to borrowers who require immediate cash and have high repayment potential. These loans can be for very small amounts and are repayable in as little as two to four days. These loans are attractive for those who require urgent cash but do not have the credit rating or time required to obtain an loan from a traditional bank. Bank Loans Grace Period.

Question 2

What is a fixed-rate mortgage?

Answer

A fixed-rate loan is one in which the interest rate will not change over the term of the loan. Fixed-rate loans allow borrowers to know exactly what their monthly repayments will be so they can plan their budget accordingly. There is a downside however: they may be able to refinance in order to get a better rate on a new loan if rates drop. Bank Grace Period.

Question 3

What is loan amortization specifically?

Answer

An amortization schedule will show the breakdown or the total amount of monthly payments that you'll make on a loan. The amortization schedule will show the amount of your monthly installment goes to interest and how much goes toward principal throughout the duration of the loan. You must be able to read and comprehend your amortization plan so you are aware of the amount of money you pay for your loan, and the time when you'll be debt-free. An example: If you've got $200,000 for a 30-year loan the monthly payment would be $978. Of that amount 806 dollars will be used for interest while $172 will go towards the principal balance. This means that the principal balance and interest are paid throughout the loan's term. Grace Period.

Question 4

What is the best way to calculate your loan's interest payments?

Answer

To determine the interest payment for a loan you must know the principal amount and the interest rate. Also, the number of monthly payments. In order to convert the annual interest rate to decimal numbers, first divide it by 100. Divide this amount by your principal amount to calculate your annual income. After that, divide the number by 12 to calculate the monthly interest. For instance, if you have a loan of $10,000 with an 8% annual interest rate then your monthly interest payments will be $83.33 ($10,000 x .08 / 100 = $80 / 12 = $6.67 per month). Bank Loans Grace Period.

Question 5

What is a Loan Underwriter?

Answer

The loan underwriter ensures that the prospective borrower meets the requirements to get a loan. The underwriter will evaluate the borrower's credit score and income as well as the debt ratio prior to making the final decision. If they think a borrower is too risky or is not qualified, they will refuse to accept the loan. If they decide that the applicant is qualified, has a low risk, and meets all the criteria they will grant the loan. Bank Grace Period.

Question 6

What exactly is what is a "conventional loan"?

Answer

A conventional loan is a type mortgage that isn't insured by the government. Conventional mortgages satisfy all specifications of Fannie Mae & Freddie Mac. Conventional loans have an interest rate that is lower than an FHA, VA or VA loan. However, it will usually require a higher down payment. Conventional loans are open to borrowers with scores that is as low as 680 in contrast, FHA or VA loans require minimum of 680. Grace Period.

Question 7

What is the minimum down amount required to get an FHA loan?

Answer

Although the down payment for an FHA loan can be variable however, it's usually 3.5 percent of the home's total cost. To be eligible to receive an FHA loan, you'll need to have a credit score of at minimum 580. A credit score of between 579 and 500 is required to be eligible for an FHA Loan. However you will most likely be required to make larger down installments. You can also get an FHA loan if you're a veteran or currently serving in the military. Bank Loans Grace Period.

Question 8

Who is a micro lender?

Answer

A micro lender is a type of financial institution that provides loans to individuals and small-scale companies. Most often, the amount of money borrowed is not more than US$50,000. They typically are entrepreneurs and others with low incomes who might not be able to obtain traditional bank loans. They charge high rates of interest and fees due to the fact that they have to take on greater risk by lending money to people who might not be able to repay it. However, micro lenders can be an excellent resource for entrepreneurs by helping them to get their business off the ground and grow. Bank Grace Period.

Question 9

What exactly is a loan forgiveness?

Answer

A loan forgiveness happens when the lender agrees that they will stop collecting the borrower's payments for a specified time. This gives the borrower a chance to make up the unpaid payments or to locate another source of income. The interest rate on the loan will continue accruing during the forbearance period, which could last for as long as one year. A forbearance fee may be paid by the lender, which is usually an amount based on the outstanding balance on the loan. Grace Period.

Question 10

What is a loan disclosure?

Answer

A loan disclosure is a description of the terms and condition of the loan. It contains the conditions and terms of the loan. It also includes information on the rate of interest, the amount, as well as the repayment schedule. Loan disclosures are necessary for borrowers to fully comprehend their loan conditions and make an informed decision regarding whether or not they wish to stay with the loan. This assists lenders in avoiding potential legal action in the event of a dispute. Bank Loans Grace Period.