Explain Reverse Annuity Mortgages (RAMs) loan?

Q: How can the effect of below-market-rate loans on value be determined using investor criteria?

A: Below market interest loan is the loan on which interest rate is charged less than the current…

Q: What does the annuity factor indicate?

A: Annuity factor It indicates the discounted factor’s sum for all the n maturities when all n…

Q: Define the term the annuity factor?

A: An annuity factor is financial value that, when multiplied by a periodic amount, then it shows the…

Q: Explain Inflation, Mortgage Pricing, and Payment Structuring

A: Inflation:  Increase in price of the good is called inflation. When inflation increases, the…

Q: Explain Collateralized mortgage obligations (CMOs)?

A: Collateralized mortgage obligation is referred to as complex debt security  that directs the…

Q: What is a compensating balance? What effect does a compensatingbalance requirement have on the…

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Q: Explain the term Loan Repayment Schedule?

A: Loan is a sum of money borrowed by an individual/organization from a bank or lender that has to be…

Q: How does mortgage securitisation impact the financial market?

A: Mortgage securitisation or mortgage backed security is similar to a bond and is made up of a bundle…

Q: xplain mortgage financing and how can someone afford a mortgage loan

A: Financing involves raising funds for undertaking business activities. Business activities includes…