The term “Inside the Variable Interest Rate” refers to the interest rate that a borrower will pay on a loan that has a variable interest rate. This interest rate is based on the prime rate, which is the rate that banks charge their best customers. The prime rate is usually about 3% higher than the … Read more
An unsecured loan is a type of loan that is not backed by any collateral. This means that the lender does not have any claim on the borrower’s assets if they default on the loan. Unsecured loans are also known as personal loans or signature loans. The main advantage of an unsecured loan is that … Read more
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
