Loan Definitions

A loan may be guaranteed by collateral, meaning that the lender either keeps an asset belonging to the borrower until the loan is repaid or has the right to seize such an asset in the event of default. Often, loans are obtained to purchase a major asset, such as a house. These loans are generally guaranteed by the asset they are used to buy.

A commercial loan is a debt-based funding arrangement between a business and a financial institution such as a bank. It is typically used to fund major capital expenditures and/or cover operational.

Definition of loan: Written or oral agreement for a temporary transfer of a property (usually cash) from its owner (the lender) to a borrower who promises to return it according to the terms of the agreement, usually.

A loan that is insured by the Federal Housing Administration (FHA), guaranteed by the Department of Veterans Affairs (VA) or guaranteed by the rural housing service (RHS). The insurance protects the lender (not the borrower) if a borrower defaults on the loan.

Teaser Interest Rate Relationship rates are offered to customers who link their CDs to a Chase personal checking account. On a 12-month CD for under $10,000, for example, you’ll currently draw twice the percentage rate offered on the standard CD. As mentioned, a minimum of $1,000 is required to open a Chase CD account, and interest is compounded daily.

What does loan mean? loan is defined by the lexicographers at Oxford Dictionaries as A thing that is borrowed, especially a sum of money that is expected to be paid back with interest.

Standard repayment plans for federal student loans set a timeline of 120 months until payoff, but the minimum monthly payments are $50. In this example, it would take me much less time (and much less money) to pay back a subsidized loan vs. an unsubsidized loan.

Prodigy Finance: APR Explained (lon) n. 1. the act of lending; a grant of the temporary use of something: the loan of a book. 2. something lent or furnished on condition of being returned, esp. a sum of money lent at interest. 3. loanword.

This down payment may be expressed as a portion of the value of the property (see below for a definition of this term). The loan to value ratio (or LTV) is the size of the loan against the value of the property. Therefore, a mortgage loan in which the purchaser has made a down payment of 20% has a loan to value ratio of 80%.

A no-appraisal loan may use alternative methods of determining a home’s value for the purpose of defining how much money to lend, or it may not require professional assessment of the home’s current.

FHA Interest Only Loan Question: With interest rates on the rise we are looking for a cheaper mortgage and lower monthly costs. One lender has suggested we consider interest-only financing. What are the pros and cons for such loans? Answer: With interest-only financing the borrower has a far smaller monthly payment at the start of the loan term.