TD Bank Vehicle Loans

Question 1

What is a "non-recourse loan"?

Answer

A non-recourse mortgage is a type of loan which is not guaranteed by the borrower's assets. The lender cannot seize assets used as collateral when the borrower is in a position to pay the loan. As an example, suppose you apply for a non-recourse loan in order to purchase the latest car. If you are unable to pay your monthly payment the lender could take over the vehicle but cannot go after the extra cash they might have to pay. Compare this to a repossession loan. If you don't pay the loan the lender can take your wages and garnish them or seek other legal remedies. TD Bank Vehicle Loans.

Question 2

What is a restructuring of a loan?

Answer

Recasting your loan can aid you in getting an affordable monthly mortgage payment. If you're currently paying your mortgage but have experienced an increase in the mortgage interest rate or your monthly payment, this option may be available. The way it works is that the lender will re-amortize your loan, which is to spread the remaining portion of the loan to the course of a new period of time. This results in lower monthly costs. However, as you're paying off the loan for longer duration, you'll have to pay more interest over the duration of the loan. TD Bank Vehicle.

Question 3

What's an acceptable ratio for a loan-to-value ratio?

Answer

A ratio of loan-to-value less than 80% is considered to be a good ratio. The lender is only responsible for the 80% of the house's purchase price, while the borrower will have to pay for 20 percent. You are less likely than other people to default on your mortgage in the event that you have a lower ratio of loan to value. If you do default then the lender will be able to recover more money by selling your home. TD Vehicle.

Question 4

What is a loan forbearance?

Answer

A loan forgiveness is when the lender agrees with the borrower that they will not collect the borrower's payment for a certain period. The borrower has the chance to make up for missed payments, or to find alternative sources of income. The interest on the loan will continue accruing during the period of forbearance, which can last up to one year. Forbearance charges are typically an amount that is a percentage of the total loan amount. TD Bank Vehicle Loans.

Question 5

What is a loan-credit?

Answer

It is a kind of credit provided to borrowers by lenders. This credit allows borrowers take out more loans than they can borrow using their own credit. The lender credit is often provided to help lenders attract new customers. They typically are offered in the form of a percentage of the amount of the loan. For instance, if you took out a $10,000 loan , and the lender credit was 10%, you would only need to repay $9,000. Lender credit rates can vary between lenders . It is essential to evaluate rates before choosing the right lender. TD Bank Vehicle.

Question 6

What is an FHA loan and what are its benefits?

Answer

FHA loan is an insured mortgage by the Federal Housing Administration (FHA). FHA cannot provide loans, however it can insure the loans. FHA can reimburse lenders for any losses they may endure if the loan you have taken falls into default. FHA loans offer several benefits over conventional mortgages. FHA loans are available for as little as 3.5% down. FHA loans generally have rates of interest that are lower than conventional mortgages. FHA loans are able to be used to purchase a house regardless of whether your credit score is not perfect. TD Vehicle.

Question 7

What exactly is the term loan refinancing?

Answer

Recasting your loan can help you get lower mortgage payments. It is for those who are currently paying their mortgage but have had an increase in their mortgage rate or monthly payment. It works like this the lender will re-mortize the loan, which means that they will extend the loan amount by a different number of years. This results in lower monthly payments. However, the amount of interest you pay over the course of the loan will be higher since you now have to repay the loan for longer terms. TD Bank Vehicle Loans.

Question 8

What is a loan?

Answer

A lender is an individual or company that lends money to the borrower in expectation that it will be paid back with interest. You can find lenders at banks, credit unions as well as payday lenders. Companies and private investors are also able to serve as lenders. TD Bank Vehicle.

Question 9

What is the definition of a "loan to value"?

Answer

A loan to Value (LTV) is a term in mortgage lending which indicates the ratio between the amount of loan and the purchase price of the property. LTV is 50 percent for a $100,000 loan to purchase a house worth $200,000. LTV ratios play a major role in determining whether a borrower is eligible to receive a mortgage. In general, the greater the LTV ratio, the higher the risk for the lender, and consequently the greater the interest rate applied to the loan. This isn't always true. Lenders might offer lower rates for loans with large LTV ratios in certain cases. TD Vehicle.

Question 10

What are discount points?

Answer

A discount points is a cost that the borrower must pay to the lender in order to get an loan that has a lower interest. One point equals one percent of the loan amount. So, for example, if you borrow $100,000 and pay two points, you will owe the lender $2,000. People who want to lock in a lower rate of interest on their loan can do so by using points. The issue is that points can increase the total cost for the loan. If the borrower believes they'll be saving more during the duration of the loan than they will pay for the points they have to pay, they ought to only pay them points. TD Bank Vehicle Loans.