What are the major differences between the four CPM loans? What are the advantages to borrowers and risks to lenders for each? What elements do each of the loans have in common?

Q: Which are the major problems facing a lender when reviewing a loan request made by a borrower?

A: Introduction: A loan agreement is nothing but an agreement between a lender and the borrower which…

Q: What is subprime lending, it's advantages & disadvantages? with real life examples

A: Subprime lending is a type of loan that is offered to individuals with less than ideal credit…

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: 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: What are the two best arguments against debt reduction (i.e., the cons)?

A: The term "debt reduction" is also known as debt settlement. As the name suggests, it…

Q: Conventional loans usually require the debt ratio to be?

A: The objective of the question is to determine the typical debt ratio required for conventional…

Q: 44. Which statement correctly identifies the loan type with its function? O (a) FHA guarantees loans…

A: A loan is defined as the financial term, where the funds or money is given to some other party in…

Q: What is a mini-perm or bullet loan? When and why is this type of loan used?

A: Answer: Project development may be characterized as the process of designing, planning,…

Q: GSIS loans

A: GSIS Loan  The general qualifications are actually quite simple just like the other government…

Q: What does a proper loan structure accomplish for the borrower and the lender?   A. Supports…

A: The term "loan structure" describes the range of options available to a lender when giving credit to…

Q: How one determines where to borrow or not? What factor into the decision making process?

A: The act of borrowing money or the sum of money borrowed by an individual, company, government, or…

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 might a lender prefer a loan with a lower interest rate and a participation?

A: One meaning of loan participation is multiple lenders participating in lending to the same borrower.…

Q: What is securitization? What are its advantages to borrowers?What are its advantages to lenders?

A: Securitization is a financial process that takes an asset of some kind and turns it into a security,…

Q: When a lender looks at your FICO credit score to decide whether to lend to you, which of the “Five…

A: The five Cs of credit is a system used by lenders to get the creditworthiness of borrower

Q: Define the term truth-in-lending laws? What are its requirements?

A: Answer: The 1968 Truth in Lending Act (TILA) is a federal statute of US aimed at encouraging…

Q: What are the different types of SSS loans?

A: A SSS loan is given in the Philipines, which is majorly divided into three categories.

Q: Explain GPM Mortgage Loans and Effective Borrowing Costs

A: Graduated-payment contract (GPM) loans: It may be a sort of fixed-rate mortgage in which…

Q: What are the advantages to borrowers and risks to lenders for each?

A: Borrowers are the people who borrows the money for any specific purpose. Borrowers pay some amount…

Q: Which are the fundamental relationships to know in any loan refinancing decision include at least…

A: Loan refinancing decision involves replacement of an existing debt with a new debt. The intention of…

Q: What is a buydown loan? What parties are usually involved in this kind of loan?

A: INTRODUCTION There are various mortgage financing techniques which helps to reduce cost for the…

Q: Differences and similarities of Business and Consumer Loan.

A: A loan is a financial term that indicates the borrowings of an individual or an organization. In…

Q: What are the 5 Cs of credit that are sometimes used by bankers and others to determine whether a…

A: While granting credit banks do analysis of that loan amount will be repaid without any problem.

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: Why would a lender be willing to make a participation loan?

A: Introduction: Participation loan is a form of loan in which lender is participating in net operating…

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 the different types of loans available?

A: Types of loans available as follows: Debt Consolidation Loans: A consolidation credit is intended to…

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…

Q: What are the two best arguments favor debt reduction (i.e., the pros)?

A: Debt financing indicates the mode of raising funds from the outside in return for timely loan…

Q: Explain Collateralized mortgage obligations (CMOs)?

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

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…