A delinquent account is a credit card account that has been delinquent, or behind, on payments for an extended period of time. A delinquent account is typically reported to the major credit bureaus, which can negatively impact your credit score. If you have a delinquent account, you may have difficulty obtaining new credit or loans … Read more
Unearned interest is the difference between the interest that has accrued on a loan and the interest that has been paid by the borrower. This can happen when a borrower makes a partial payment, or when a borrower pays off a loan early. What is unearned interest discount? Unearned interest discount is the portion of … Read more
Friction cost is the amount of money that a borrower must pay in order to obtain a loan. This cost includes the interest rate, origination fees, and other costs associated with taking out a loan. What’s another word for financial problems? There is no one-size-fits-all answer to this question, as the term “financial problems” can … Read more
The term “accelerated payments” refers to a type of loan repayment schedule in which the borrower pays off the loan more quickly than originally agreed to. This can be done by making larger payments each month, making additional payments on top of the regular monthly payments, or by paying off the entire loan balance early. … Read more
A commitment fee is a fee charged by a lender to a borrower for agreeing to provide a loan. The fee is typically a percentage of the total loan amount and is paid upfront. Commitment fees are common in commercial real estate lending, where they can be used to offset the cost of originating and … Read more
Add-on interest is the amount of interest that is added to the principal balance of a loan. This type of interest is typically used for loans that have a variable interest rate. The add-on interest rate is usually a percentage of the outstanding principal balance. Add-on interest can be beneficial to borrowers because it allows … Read more
A coterminous loan is a loan where the maturity date is the same as the final maturity date of the underlying security. This type of loan is often used in the context of a margin loan, where the loan is used to purchase securities. What is a supplemental mortgage Loan? A supplemental mortgage loan is … Read more
A loan shark is a person who offers loans at extremely high interest rates, often without proper documentation or collateral. Loan sharks typically operate outside of the formal banking system and often target vulnerable individuals who may not be able to obtain a loan from a traditional lender. Loan sharks may use violent or threatening … Read more
Cumulative interest is the total interest that has accrued on a loan over time. This can be calculated by taking the original loan amount, multiplying it by the interest rate, and then multiplying that by the number of years the loan has been outstanding. How do you calculate interest rate? Interest rates on loans can … Read more
A settlement statement is a statement prepared by a closing agent describing all of the costs associated with a real estate transaction. This statement is given to the buyer and seller at closing, and outlines all of the fees and charges paid by the buyer and seller in connection with the purchase or sale of … Read more
