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
A soft loan is a loan with terms that are more flexible than a conventional loan. For example, a soft loan may have a lower interest rate, a longer repayment period, or a grace period for making payments. Soft loans are often made by governments or international organizations to promote economic development in developing countries. … Read more
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. … Read more
The advance rate is the percentage of the loan amount that the lender is willing to advance to the borrower. The advance rate is based on the value of the collateral and the creditworthiness of the borrower. What is a bullet term loan? A bullet term loan is a type of loan where the borrower … Read more
A capitalized cost reduction is a reduction in the capitalized cost of a loan. The capitalized cost is the total amount of money that is borrowed, including any fees or other charges. A capitalized cost reduction can be used to lower the monthly payments on a loan, or to reduce the total amount of interest … Read more
A self-liquidating loan is a type of loan that is used to finance a project or purchase where the loan amount is repaid using the cash flows generated by the project or purchase. In other words, the loan is “self-liquidating” because it is paid back using the money generated by the project or purchase that … Read more
A senior bank loan is a type of loan that is typically extended to a company by a bank or other financial institution. The loan is considered senior debt, meaning that it has a higher priority in the event of a default than other types of debt. This type of loan is often used to … Read more
A non-purpose loan is a loan that is not used for a specific purpose, such as a home loan or an automobile loan. The borrower may use the loan for any purpose they wish. Non-purpose loans typically have higher interest rates than purpose loans. What is Nondisclosable loan? A nondisclosable loan is a type of … Read more
. What is the Applicable Federal Rate (AFR) and how can it be used? What does AFR stand for in mortgage? The term “AFR” stands for “annual percentage rate.” This is the interest rate that is charged on a loan on an annual basis. This rate is typically higher than the interest rate that is … Read more
