First Bank and Trust Tuition Loans

Question 1

What exactly is a "lender credit"?

Answer

They offer borrowers a kind of credit known as lender credit. This gives borrowers the ability to take out loans that they aren't able to borrow with their personal credit. Credits offered by lenders are usually used to assist lenders in attracting more customers. They typically take the form of a percentage of the amount of loan. It would cost you $9,000. If the credit from the lender was 10% and you took out $10,000 in loan, you'd only need to pay $9000. Lender credits may differ from one lenderto another, so make sure to look around and compare rates prior to deciding which lender is right for your needs. First Bank and Trust Tuition Loans.

Question 2

What is a fixed-interest rate loan?

Answer

A fixed-rate loan is a type of loan in which the interest rate will not change over the course of the loan. Fixed-rate loans have the advantage that borrowers know what their monthly payments will look like and can plan their budget according to. A refinancing loan could be a better deal, but the borrower may not get the best interest rate. First Bank and Trust Tuition.

Question 3

What are non-recourse loans?

Answer

A non-recourse loan is one that is not backed by other assets. If the borrower is unable to repay the loan, the lender can only take possession of the assets that are used as collateral for the loan. As an example, suppose you take out an unrecourse loan to buy an automobile. If you are unable to make your monthly payments, the lender can repossess the car, but they can't come after you for any additional amount you might owe them. Compare this to the recourse loan, which is where the lender can make garnishments on your wages or pursue other legal action if you do not pay the debt. First and Trust Tuition.

Question 4

What is a good ratio for a loan to value ratio?

Answer

A loan-to-value ratio of less than 80% is considered a good one. This means that the lender contributes only 20% of the cost of buying the property, and the borrower has to pay 20%. Low ratios of loan to value are crucial because it reduces the likely to be in default on your mortgage. The lender can also sell your home in order to recover more of their investment should you fail to pay. First Bank and Trust Tuition Loans.

Question 5

What is an installment loan?

Answer

A installment loan is a loan that allows you to borrow an amount that is set and then agree to repay it with monthly installments. The installment loan can be used for any use including the purchase of a vehicle as well as home improvements, medical expenses, or debt consolidation. The interest rate for an installment loan is usually lower than a credit card or personal loan. It also has flexible terms that can be altered to suit your requirements. If you are looking to take out huge amounts of cash and split the repayments into smaller, manageable installments, this could be an option. First Bank and Trust Tuition.

Question 6

What are non-recourse loans?

Answer

Non-recourse loans are not secured by the assets of the borrower. The lender is not able to seize the collateralized property when the borrower is in a position to pay back the loan. For example, suppose you get a loan that is nonrecourse to purchase a vehicle. If you default on your monthly payment, the lender has the right to repossess the vehicle, but they aren't able to pursue you for any additional money. Compare this to a recourse loan, which allows the lender to be able to garnish your wages and also engage in other legal proceedings if you fail repay the loan. First and Trust Tuition.

Question 7

What are the different types of loans?

Answer

The kinds of loans include personal business, home, and student loans. A personal loan may be used for whatever purpose. These are loans secured by collateral that can be used for the purchase or refinance of homes. Business loans are also secured loans that are used to help start or expand a business. Student loans, which are unsecured loans, are used to fund education expenses. First Bank and Trust Tuition Loans.

Question 8

How much is the down payment for an FHA loan?

Answer

The amount of down payment required for an FHA loan varies, but it is typically 3.5 percent of the cost of the home. A FHA loan is only offered to those with a minimum credit score of 580. A credit score between 500 and 579 is the minimum to qualify to receive an FHA Loan. However you will most likely need to pay higher down payments. FHA loans are also offered for active military personnel and veterans. personnel. First Bank and Trust Tuition.

Question 9

How much can I qualify for a va-loan?

Answer

The VA doesn't have a loan limit that is maximum. Instead, it relies on the conforming loan limits set by Fannie Mae or Freddie Mac to determine the maximum amount you can borrow. The limits will vary based upon the area of your home. Any loan that exceeds the limits is guaranteed by the VA. If you want to borrow more than the amount included in the guarantee, you must make a deposit of additional cash. Use our online VA Loan Limit Calculator tool to find the amount you could be qualified for. First and Trust Tuition.

Question 10

What assets can be utilized as collateral to the personal loan?

Answer

You have many options of collateral you can use as collateral for a personal loan, like cars, homes or even bonds, stocks, and homes. Before applying for a personal loan it is essential to speak with the lender about the options for collateral available. There may be a difference in the requirements for acceptable collateral. Certain lenders are more flexible than others. It is always best to discuss the possibilities with the lender prior to you file your application. This will help ensure that all parties are in the same boat, and avoid any surprises in the future. First Bank and Trust Tuition Loans.