Mortgages
A mortgage is a formal agreement in which a bank or other financial institution lends cash at interest in return for assuming the title to the debtor's property, on the condition that the obligation is paid in full.
Mortgage
The term "mortgage" is a type of loan that a borrower takes to maintain his house or any form of assets and he agrees to return the amount in a particular period of time to the lender usually in a series of regular equally monthly, quarterly, or half-yearly payments.
Explain mezzanine loan?
Mezzanine financing is a blend of both debt and equity financing. It is a way for firms to raise capital for certain projects or for acquisition via a hybrid of debt and equity financing.
A mezzanine loan is like a short term bridging loan. These loans are subordinate to the senior secured loans.
The maturity period of mezzanine loans are greater than that of the senior secured loans. The covenants of mezzanine loans are similar to that of senior secured loans.
Step by step
Solved in 5 steps
