Q: Why is it essential to know different kinds of loans?
A: A loan helps in determining the money supply and helps new businesses in the lending process. The…
Q: What are the factors on which the cost of a loan depends?
A: Cost of loan are the expenses brought about by the borrower for taking the advance because of the…
Q: Explain the term Wraparound Loans?
A: Wraparound Loans:Wraparound Loans are also called as wrap. It is a type of mortgage loan.It allows a…
Q: In what way does leverage increase the riskiness of a loan?
A: The advantage a financial specialist or investor gets from utilizing debt is called financial…
Q: What is meant by a participation loan? What does the lender participate in? Why would a lender want…
A: Participation loans: It is a type of loan in which the lender shares the net operating income of the…
Q: How can the effect of below-market-rate loans on value be determined using investor criteria?
A: Below market interest loan is the loan on which interest rate is charged less than the current…
Q: Describe the Repayment Plans Offered by the Lender?
A: Answer: A repayment plan is a method of repaying a debt over an extended period of time, usually by…
Q: Which are the Borrower’s Rights to Reinstate?
A: The person that takes something from another person with a promise to return back at a specified…
Q: What is the difference between a line of credit and a short-term loan?
A: Short term loan: A loan is borrowed money that is to be paid back along with the interest. A…
Q: Explain the Other characteristics of home equity loans?
A: A type of loan under which equity is used as collateral by the borrower is known as a home equity…
Q: From the standpoint of a borrower, is long-term or short-term credit riskier? Explain
A: credit risk is define as the chances of a loss due to borrower's failure to repay obligation in…
Q: How can we determine a Loan's Balance, Principal, and Interest?
A: Loan balance can be determined with the help of formulae: PV is present value r is rate N is number…
Q: Why loan support is needed, explain.
A: Loans are any type pf financial credit facility in which a sum of money is lent by one party to…
Q: Illustrate some examples in the area of loan transactions?
A: Loan transactions Accounting: Loans refer to one of the best options for financing. Every business…
Q: What contingencies are commonly found in permanent or take-out loan commitments? Why are they used?…
A: The contingencies found in permanent or take-out loan commitments and their use are as follows: A…
Q: Explain the Factors Important in Mortgage Loan Pricing?
A: Mortgage loan pricing: The process of analysis and arriving at the exact interest rate for a…
Q: How do lenders’ and borrowers’ requirements differ? How can financial intermediaries bridge the gap…
A: Lenders' requirements: The minimization of risk This includes the minimization of the risk of…
Q: What is the difference between Direct and Indirect Financing?
A: Difference between direct financing and indirect financing are as follows
Q: What does “assignment” mean and why would a lender want to assign a mortgage loan?
A: Mortgage assignments refer to a document that shows that a mortgage is transferred from the original…
Q: From the borrower’s standpoint, what are the advantages and disadvantages ofsecuring a loan?
A: Secured loans means offering an asset or property to the lender as a collateral against the funds…
Q: Why might a lender prefer a loan with a lower interest rate and a participation?
A: One meaning of loan participation is multiple lenders participating in lending to the same borrower.…
Q: When would there be a discount on a loan? How about a premium?
A: The loan is purchased to finance the purchase of equipment, education purposes, the purchase of…
Q: What is securitization? What are its advantages to borrowers?What are its advantages to lenders?
A: Securitization is a financial process that takes an asset of some kind and turns it into a security,…
Q: What are the main differences between ARMs and FRMs loans? You need to highlight the differences in…
A: Loan which are provides to the borrower either in Adjusted Rate of Mortgage or Fixed Rate of…
Q: What is unsecured borrowing?
A: Definition: Liabilities: The claims creditors have over assets or resources of a company are…
Q: Define the term truth-in-lending laws? What are its requirements?
A: Answer: The 1968 Truth in Lending Act (TILA) is a federal statute of US aimed at encouraging…
Q: What is the indifference point under the net present value? When would there be a discount on a…
A: SOLUTION- NET PRESENT VALUE = PRESENT VALUE OF CASH INFLOW - PRESENT VALUE OF CASH OUTFLOW.
Q: lending
A: The term net lending is defined as an economic measure which measures as to whether the government…
Q: What are the different types of SSS loans?
A: A SSS loan is given in the Philipines, which is majorly divided into three categories.
Q: What are the advantages to borrowers and risks to lenders for each?
A: Borrowers are the people who borrows the money for any specific purpose. Borrowers pay some amount…
Q: Define Loan Refinancing?
A: Introduction: A loan refinancing permits a debtor to replace their present obligation of debt with…
Q: What will be the Effect of the After-Tax Interest Cost on Loan Decisions?
A: Interest cost for loan borrowers depends mainly upon the rate of interest charged by lenders.…
Q: How can we determine the borrowing rate of return?
A: The borrowing rate of return is the return that is charged on the borrowings made by the firms or…
Q: Explain mezzanine loan?
A: Mezzanine financing is a blend of both debt and equity financing. It is a way for firms to raise…
Q: Explain Loan Closing Costs and Effective Borrowing Costs?
A: Closing costs are the uses that buyers and vendors ordinarily pay to total a real estate deal, over…
Q: What is the difference between interest rate risk and default risk? How do combinations of terms in…
A: Interest rate risk is the risk of an investment due to changes in interest rate. When market rates…
Q: What is a buydown loan? What parties are usually involved in this kind of loan?
A: INTRODUCTION There are various mortgage financing techniques which helps to reduce cost for the…
Q: What is a secured loan?
A: Secured Loan : it is a type of loan in which lender lend money on the basis of collateral or…
Q: What is meant by a “purchase-money” mortgage loan? When could a loan not be a purchase-money…
A: A purchase-money mortgage loan is a loan that home sellers provide to the buyers of the home. Buyers…
Q: What is a loan amortization schedule, and what are some ways these schedules are used?
A: Loan Amortization Schedule- An amortization schedule is a table that provides the details of the…
Q: What are the factors that you need to consider in applying for a loan? Why is it important to…
A: When applying for a loan one need to consider several factors at play. Some of them are quantitative…
Q: Why would a lender be willing to make a participation loan?
A: Introduction: Participation loan is a form of loan in which lender is participating in net operating…
Q: How does compound interest affect the loans you undertake? For example, how would this affect…
A: Interest is an additional value which is charged on borrowed or deposited amount. Interest can be an…
Q: Write the different types of loans available?
A: Types of loans available as follows: Debt Consolidation Loans: A consolidation credit is intended to…
Q: Why would an investor-borrower want a participation loan?
A: SOLUTION:- Participation loan: it is a kind of loan in which lender participates in the net…
Q: EXplain the loan structuring?
A: Loan restructuring is designing of loan according to the requirements of the borrower and also to…
Q: What is a compensating balance? What effect does a compensatingbalance requirement have on the…
A:
Q: why loan officer prefer accrual basis accounting
A: The financial statement of a firm can be prepared based on accrual basis of accounting or cash basis…
Q: What are the benefits to the back for amortizing a loan
A: In finance amortized loan is one in which fixed monthly payments are made by the borrower to the…
Q: Which loan should Spike take and why?
A: Simple interest method is a method of computing interest on borrowed amount where interest is…
Q: How do legal considerations affect a firm’s credit policy?
A: Four elements of credit policies are as follows: 1) Cash discount 2) Credit period 3) Credit…
Q: What is a loan amortization schedule, and what are some ways these schedules are used?
A: Loan is an agreement between lender and borrower where lender provide funds to borrower which repaid…
Q: Which of the following shows the timeline of the loan from the lender's perspective?
A: A lender is the one who lends to the other party. In return, the lender receives the sum with an…
Q: What is mortgage market?
A: A mortgage is a loan backed by some particular real estate property collateral.
Q: What is SBA Loans
A: Loans- Business loans, also known as commercial loans, are a type of finance used to fund business…
Q: What is the meaning of Loan assumably?
A: Introduction: Assumable loan is nothing but a mortgage which can be passed to another party by the…
Q: What elements do each of the loans have in common?
A: LOAN - A loan could be a sort of debt incurred by a personal or different entity. The…
Q: Explain the Market Value of a Loan?
A: The market price of Debt refers to the value investors would be willing to shop for a company’s debt…
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