Given the role of the loan originator in the securitization process of a mortgage loan described in the text,do you think the loan originator will be worried aboutthe ability of a household to meet its monthly mortgagepayments?

Q: If a friend who’d never heard of amortization before asked you to explain how loan payments work,…

A: Amortization is a technique used in accounting to decrease the book value of such a loan or…

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: 49. You have a first time homebuyer who is going to settle on the purchase of a $156,000 home with a…

A: Loan-to-Value: A financial ratio that compares the amount of money being borrowed to the market…

Q: How aware are you of the fees associated with your current loans, and how might a better…

A: Understanding the fees associated with current loans can significantly influence borrowing…

Q: What is the difference between a line of credit and a short-term loan?

A: Short term loan:   A loan is borrowed money that is to be paid back along with the interest. A…

Q: For a creditor; how is a loan impairment recorded?

A: Creditors:   They are the outside entities to whom the business owes money for any product or a…

Q: List two types of restrictions long-term creditors often put oncompanies when granting them a loan.…

A: External confirmation External confirmation can be defined as a substantive audit procedure used by…

Q: What is a mortgage REIT?

A: Answer: Mortgage REITs invests in mortgage and own land, loan capital to real estate owners for…

Q: financial impact of lily taking out this payday loan? how do borrowers get trapped in an inescapable…

A: Payday loans are non-secured ash advances for small sums of money with extremely high-interest rates…

Q: What two types of current assets are frequently used as security for short-term loans?

A: Short term loans are generally obtained by companies in order to support their temporary business…

Q: What does “assignment” mean and why would a lender want to assign a mortgage loan?

A: Mortgage assignments refer to a document that shows that a mortgage is transferred from the original…

Q: Why would lenders, in general, tend to set loan maturities (not amortization, but when the loan…

A: Loan Maturity: The time period for which a loan is extended is known as the loan period.  The date…

Q: ordinary annuity, annuity due, perpetuity, growing annuity or amortization topics.  Then describe…

A: A series of fixed periodic payments made at each interval indicates the annuity payments. These…

Q: When you borrow money, you typically have to pay an interest rate. What does interest represent? a)…

A: Step 1:When you borrow money, you typically have to pay an interest rate. Interest represents:a) The…

Q: What are the factors that you need to consider in applying for a loan? Why is it important to…

A: When applying for a loan one need to consider several factors at play. Some of them are quantitative…

Q: How does compound interest affect the loans you undertake? For example, how would this  affect…

A: Interest is an additional value which is charged on borrowed or deposited amount. Interest can be an…

Q: Write some of the examples of commercial loans?

A: Following are the examples of commercial loans: Term loan: A term loan is an advance from a bank…

Q: What are the benefits to the back for amortizing a loan

A: In finance amortized loan is one in which fixed monthly payments are made by the borrower to the…

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

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

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.