If a friend who’d never heard of amortization before asked you to explain how loan payments work, what would you say?

Q: Ways that a lender may respond to a defaulted loan without resorting to foreclosure include all of…

A: ExplnationThe lender's response options to a defaulted loan often involve alternatives to…

Q: Why lenders assume no risk in granting loan to the government though the return of this type of loan…

A: Loans are raised by governments to meet the financing requirements of the country.

Q: Briefly describe something about paying off loans

A: There are a few things to consider when paying off loans. First, you need to consider the interest…

Q: A firm raises capital by selling $10,000 worth debt with flotation costs equal to 2% of its par…

A: YTM of the bond is calculated  using excel rate function-

Q: What is meant by a participation loan? What does the lender participate in? Why would a lender want…

A: Participation loans: It is a type of loan in which the lender shares the net operating income of the…

Q: In your own opinion, what would be the out come or consequences if a debtor failed to settle thier…

A: A debt default occurs when the borrower is unable to pay the money back to the lender at the time…

Q: Ways that a lender may respond to a defaulted loan without resorting to foreclosure include all of…

A: In the context of a lender's response to a defaulted loan, the options provided in the…

Q: ate one (1) problem situation concerning a loan amortization problem. Make a brief description of…

A: We need to create a loan amortization table for any practical situation.

Q: A good example of an alternative question is: A. “Why did you borrow the money?” B. “Will you repay…

A: An alternative question is a question that presents two or more possible answers and presupposes…

Q: (1) How does getting a secured loan using accounts receivable as collateral differ from factoring?…

A: Hi student Since there are multiple questions, we will answer only first question. Sales means…

Q: Define mortgage securitisation , with a relevent example?

A: Mortgage is a loan agreement between the borrower and the lender, in which the property or real…

Q: Question - Building on these definitions, if I ask you in terms of an investment vs. a long term…

A: The investment In this case, the investor shall prefer compound interest because if the investor…

Q: When might a borrower want to have another party assume his liability under a mortgage loan?

A: There are basically two conditions when a borrower might want to have a third party:

Q: Describe the process by which a banker’s acceptance is create

A: Banker's acceptances It can be characterized as the bank's promise to pay the given sum to the…

Q: Describe some of the motives and mistakes made by the mortgage securitizers?

A: To market as well as attract borrowers for lenders.Evaluation of the borrower's credit…

Q: Assuming the borrower is in no danger of default, under what conditions might a lender be willing to…

A: There can be majorly two possibilities under which a lender may accept a lesser amount than that of…

Q: 5. explain what the benefits of escrow for both the borrower and the lender may be? Do disadvantages…

A: When you make big investment or purchase property in the market than there is need of third party…

Q: about a business wo

A: Before making a loan to a borrower, banks examine the firm's key financial figures. To establish the…

Q: When would you would use a Personal Loan? Why would you choose a Personal Loan over other methods of…

A: “Since you have posted multiple questions, we will solve fist question for you. If you want any…

Q: As long as you have a strong reason for taking a loan, there is no need to understand the terms of…

A: Understanding the terms in a loan agreement is vital. Loan agreements are an critical a part of…

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: Why should you and should not sign a personal guarantee for a business loan?

A: The personal guarantee for a business loan refers to the assurance by the company or a business…

Q: Canceling the original loan and signing a new loan agreement with different terms to settle troubled…

A: The question is related to Canceling the original loan and signing a new loan agreement with…

Q: Loans that are to be securitized are passed on to ____ _ _ _ _ _ ___. This helps ensure that if the…

A: Securitization refers to the practice where debt obligations are pooled together and sold as…

Q: Your company provides credit to customers. Someof these customers default on their loans, with…

A: Discriminant analysis is the analysis which provide the permission to organization in determining…

Q: You will discuss credit from the lenders point of view. What factors do lenders consider when making…

A: A credit score is a numerical representation of a person's creditworthiness and indicates how well…

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: Lenders use your credit score? To criticize your financial habits, to punish you for having good…

A: credit score reflect the credit worthiness of the borrower.

Q: Explain Restructuring the Mortgage Loan?

A: The mortgage loan restructuring option is generally considered by homeowners so that the loan…

Q: Why is a mortgage a good debt?

A: Mortgage is typical loan given for purchase of home and ownership is reserved with financial…

Q: How can be Mortgage Transfer to a New Owner?

A: Assumable mortgage refers when a mortgaged property is sold along with the loan. Buyer in this case,…

Q: Why is it necessary for the bank to have the right to assign a mortgage to a third party (for…

A: Assignment of mortgage to a third party :  It is referred to as an agreement in loan obligations are…

Q: Why might a wraparound lender provide a wraparound loan at a lower rate than a new first mortgage?

A: Introduction: Wraparound mortgage is a type of loan in which loans are given to borrowers, who is…

Q: If a consumer with a relatively low credit score applied for a loan from your bank, what other…

A: WHAT IS CREDIT CRITERIA- Credit criteria area unit the factors employed by lenders to work out…

Q: Related to ethics and contracts, why do payday loans appear to be an ethical issue?

A: Payday loans are small ticket loans for a short duration. The borrower pays back the loan when he…

Q: Which of the following correctly describes the exchange between lender and borrower in a typical…

A: The question concerns the paperwork and steps that are usually needed in a real estate loan…

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: Why can’t bank lend without a written loan policy? Explain in detail.

A: Lending procedure: There are certain steps that are followed in the procedure. this includes the…

Q: Describe some of the motives and mistakes made by the mortgageoriginators?

A: The mortgage broker did not fix a target. Without a clear aim for the year, couriers can transfer…

Q: is a financial product that allows an individual to lend their money to a bank A and be paid an…

A: A savings account is a financial product that allows an individual to lend their money to a bank and…

Q: What is meant by a “purchase-money” mortgage loan? When could a loan not be a purchase-money…

A: A purchase-money mortgage loan is a loan that home sellers provide to the buyers of the home. Buyers…

Q: Why we need to know the interest, annuities, amortization and mortgage especially in real life?

A: Money charged on a regular basis at a set rate for the use of borrowed funds or to postpone debt…

Q: Discharge for qualified principal residence indebtedness (QPRI) is:  Not likely to trigger…

A: Qualified Principal Residence Indebtedness (QPRI) is a tax provision that allows taxpayers to…

Q: What information must a brokerage disclose in writing to a borrower if the brokerage may or will…

A: “Since you have posted multiple questions, we will provide the solution only to the first question…

Q: Why would an investor-borrower want a participation loan?

A: SOLUTION:- Participation loan: it is a kind of loan in which lender participates in the net…

Amortized Loans

The term "amortization" refers to spreading the value of a loan or a debt over a series of regular payments or installments comprising of both the principal and interest amount. It generally involves the process where in the value of a loan or an intangible asset is written down over its maturity period.