A teaser rate is a low introductory interest rate offered by lenders on certain products, typically credit cards and adjustable-rate mortgages (ARMs), to entice customers. Once the introductory period expires, the interest rate typically increases, sometimes significantly. For example, a credit card may offer a 0% APR for the first 12 months, after which the … Read more
What is a bridge loan and how does it work? Bridge loans are temporary loans that are used to bridge the gap between two financial transactions. For example, a bridge loan may be used to provide funding for a new business venture before the business has generated enough revenue to qualify for a traditional bank … Read more
A classified loan is a loan that is considered to be at risk of default by the lending institution. Classified loans are usually those that are more than 90 days past due or those with payment schedules that have been modified. What are the terms of a loan? The terms of a loan are the … Read more
A loan is a type of debt. A loan is when someone gives you money and you agree to pay it back, usually with interest. There are many different types of loans, including mortgages, auto loans, and personal loans. What are the 3 types of term loan? There are three types of term loans: secured, … Read more
A consumer interest definition is a statement that defines what a consumer’s interest is in relation to a particular product or service. This statement is typically included in the terms and conditions of a loan agreement. It is important for consumers to understand their interest in a product or service before they enter into a … Read more
Construction Interest Expense is the interest that accrues on a loan used to finance the construction of a property. This type of interest expense is generally tax-deductible, and can be a significant cost for taxpayers who are financing the construction of a new home or commercial property. Can you deduct construction loan interest? Yes, you … Read more
A guaranteed loan is a loan that is guaranteed by a third party, typically a government agency or a private company. The government agency or company that guarantees the loan will typically agree to pay the lender back if the borrower defaults on the loan. Guaranteed loans are often made to borrowers who may not … Read more
The default rate definition is the percentage of loans that are in default. A loan is in default when the borrower has failed to make a scheduled payment or has made a late payment. What does it mean when a debt is in default? A debt is in default when the borrower has failed to … Read more
A retail lender is a financial institution that offers loans to individuals, rather than businesses. Retail lenders include banks, credit unions, and other financial institutions. These loans can be used for a variety of purposes, including buying a car, financing a home purchase, or paying for college. What is retail loan example? There are many … Read more
Residual interest is the interest that is left over after making a partial payment on a loan. This interest is added to the outstanding balance of the loan, and the borrower is responsible for paying it off in addition to the principal balance. Residual interest can also refer to the interest that accrues on a … Read more
