The amount financed is the total amount of credit extended to the borrower by the lender. This includes the principal amount of the loan, as well as any other fees or charges that are included in the loan agreement. The amount financed is used to calculate the interest rate and monthly payments for the loan. What is open term loan? An open term loan is a type of loan that can be used for any purpose and does not have a fixed repayment schedule. This means that the borrower can make repayments at any time, without having to adhere to a set schedule. Open term loans typically have a higher interest rate than other types of loans, such as home loans or personal loans, because they are considered to be more risky. How do you calculate amount financed? The amount financed is calculated by subtracting the down payment from the loan amount. What's the difference between amount financed and total sale price? The amount financed is the total amount of the loan that the borrower is responsible for repaying. The total sale price is the total cost of the purchase, including the amount financed, any down payment, and any other fees or charges.
What is the meaning of loan period? The loan period is the length of time over which a loan agreement extends. The loan period is typically set forth in the loan agreement and may be expressed in months or years. The loan period may be shorter or longer than the repayment period, which is the length of time over which the borrower is obligated to make payments on the loan.
What does itemization of amount financed mean? "Itemization of amount financed" refers to a breakdown of the total amount of money being borrowed, typically found in a loan agreement or promissory note. This figure includes the principal amount of the loan, as well as any interest, fees, or other charges that are being rolled into the loan. This figure does not include any down payment that may be required.