. Paying Off Your Debts Early: The Benefits of Prepayment What are prepayment terms? Prepayment terms are the conditions under which a borrower is allowed to prepay a loan. Typically, these terms will allow for a certain amount of prepayment without penalty, and then may charge a fee for any prepayment made after that. It … Read more
An IOU, or “I Owe You,” is a written agreement between two individuals or entities in which one party agrees to pay the other party a sum of money at a future date. IOUs are often used when one party does not have the cash on hand to pay the other party in full, and … Read more
A bullet loan is a type of loan that requires the borrower to make a lump sum payment at the end of the loan term. This type of loan is typically used for short-term financing needs, such as funding a business venture or paying for a major purchase. The main advantage of a bullet loan … Read more
A high-ratio loan is a loan in which the loan amount is greater than the value of the property being purchased. In order to qualify for a high-ratio loan, the borrower must have a down payment of less than 20%. High-ratio loans are typically used by first-time home buyers who may not have the 20% … Read more
A perfected lien is a legal claim or right to a property that has been registered with the appropriate authority. This gives the lien holder priority over other creditors in the event that the property is sold or used as collateral for a loan. Perfecting a lien usually involves filing paperwork with the county recorder’s … Read more
A security interest is a legal right that a lender has to take possession of and sell collateral if a borrower defaults on their loan. This right is typically granted by the borrower signing a security agreement that pledges the collateral as security for the loan. The most common type of collateral is a vehicle, … Read more
Standby Letters of Credit: A Closer Look What are the types of letter? There are many types of letters related to loans. Some common types of letters include: – Loan application letters – Loan denial letters – Loan acceptance letters – Loan modification letters – Loan payoff letters – Loan discharge letters – Loan default … Read more
How Does a Revolving Loan Facility Work? Is a term loan A credit facility? A term loan is a loan from a bank for a specific amount that has a specified repayment schedule and a fixed or variable interest rate. A credit facility is a line of credit that a bank extends to a borrower. … Read more
A prime loan is a loan that is extended by a lender to a borrower with a strong credit history. Prime loans typically have lower interest rates than non-prime loans, and are thus considered to be more advantageous for borrowers. What are the two main forms of auto financing? The two main forms of auto … Read more
A commercial and industrial (C&I) loan is a type of loan that is typically used to finance the purchase of equipment, inventory, or real estate. C&I loans are usually made to businesses, rather than individuals. C&I loans typically have shorter terms than other types of loans, such as residential mortgages. They may also have higher … Read more
