Bank of America Loans Officer Directory

Question 1

What is a peer-to-peer lender?

Answer

A peer-to-peer lending business allows people to borrow money. It's similar to how a bank operates, except that the bank lends out your cash, while a peer lender lends out to other people's funds. There are several types that are available, but the most popular is the peer-to-peer lender that allows you money to be taken out for a particular task, like home improvement projects or starting a business. The interest rates you can obtain are generally lower than those you can get through a traditional bank. Furthermore, you can have more control over the conditions of your loan. Bank of America Loans Officer Directory.

Question 2

What exactly is hard money?

Answer

A hard money loan one that's backed by assets, like real property. These loans are typically used for short-term projects like fix and flips or construction. Hard money lenders typically have higher rates of interest than traditional banks, but they are also able to approve loans quicker. Bank of America Officer Directory.

Question 3

What is an "payday loan"?

Answer

Payday loans are temporary secured, unsecured loan that is usually due on the borrower's next payday. The majority of payday loan borrowers make use of them to pay for unexpected expenses and to cover a gap in their finances until they receive their next pay. The cost of payday loans can be high therefore borrowers must carefully go through all the conditions and terms prior to deciding to agree to a loan. of America Officer Directory.

Question 4

What are the options for collateral for personal loan?

Answer

It is possible to use collateral for a personal loan in many ways, including a car, a house or even bonds, stocks or. It's important to discuss what collateral options are available with the lending institution before starting the process of applying. There may be a difference in the criteria for acceptable collateral. Certain lenders have more flexibility than others. When you are submitting an application, it's best to have an honest and transparent discussion with your lender. This will ensure that everyone is on the same page and avoid any later surprises. Bank of America Loans Officer Directory.

Question 5

What is the distinction between a bridge loan and a conventional loan?

Answer

A bridge loan is a short-term financing that pays for the down payment for the purchase of a new home or cash to help with the transfer from one residence to the next. Bridge loans tend to be short-term and have low interest rates. These loans can also be paid back quickly in order for the borrower to avail of rates that are longer-term. Bridge loans can also be referred to as swing loans, gap financing, or even jump loans. Bank of America Officer Directory.

Question 6

What exactly is a loan origination charge?

Answer

The lender may charge a loan-originating fee as a cost to process a loan application. This fee is often expressed as an amount of the amount of the loan. If you take out a $100,000 mortgage the lender could charge $2,000 in origination fees. of America Officer Directory.

Question 7

What is non-recourse loans?

Answer

Non-recourse loans cannot be secured by the borrower's assets. The lender can only seize collateral assets that the borrower utilized to secure the loan when they are not able or unwilling to repay it. Let's consider, for instance the non-recourse loan is used to purchase a car. The lender is able to take the car back when you do not pay your monthly installments. However, they are unable to take action against you for any debt you owe them. Compare this to recourse loans, in which the lender is able to garnish your wages or take other legal actions if you do not pay the debt. Bank of America Loans Officer Directory.

Question 8

How do you calculate your loan's interest payments?

Answer

You will need to be aware of the principal amount, the interest rate and the number you'll be making. To convert the annual rate of interest to decimal form, first, divide it by 100. Next, multiply this number with the principal sum to determine the annual interest. This amount should be divided by 12 to determine the monthly rate of interest. For instance, if have a loan of $10,000 with an 8% annual interest rate then your monthly interest payments would be $83.33 ($10,000 multiplied by .08 / 100 = $80 x 12 = $6.67 per month). Bank of America Officer Directory.

Question 9

What are discount point on loans?

Answer

Discount points are a fee the borrower has to pay the lender to get a lower interest rate on a loan. One point equals 1 percent of the amount of loan. The lender would owe $2,000. If you took out a loan of $100,000 and you paid two points, it would be $2,000. Borrowers who wish to lock in a lower rate of interest on their loans will pay points. Points can also raise loan costs. Borrowers shouldn't pay points if it is possible to save money over the course of time than what they pay in points. of America Officer Directory.

Question 10

What is a Loan Origination Fee?

Answer

A loan origination fee is a fee that a lender charges for processing a new application. This fee is typically expressed as a percentage from the total loan amount. Your lender may charge you $2,000 for the privilege of obtaining the loan for $100,000. Bank of America Loans Officer Directory.