What is loan margin?
It is the difference between the loan amount and the value of an asset being used as collateral.
Loan margin is a measure that creditors use to determine how risky it would be for a lender to extend a loan. The higher the margin, the more risk there is involved in extending credit or making additional loans to that borrower because if borrowers stop paying back their debts, lenders may not receive any compensation for their losses. Margin can also be calculated on a per-percentage basis instead of just on dollar amounts alone. For example, if you have 100% equity in your house as collateral and someone wants $100 from you then they are borrowing at 0% so there would be no need for them to pay anything out since they will eventually”
What is minimum credit score for fha loan? “The credit score needed for a FHA loan is 620. However, you may be able to get a lower credit score if you have some compensating factors, such as a large down payment or low debt-to-income ratio.
The FHA does not set a minimum credit score for its loans, but most lenders do. Lenders evaluate your ability to repay the mortgage based on your total debt (credit card and other) versus your monthly income; they don’t care how much money you make or what kind of debts it is – just that there’s enough cash flow coming in each month after all necessary spending has been taken out. A common rule of thumb says that no more than 30% of one’s gross salary should go towards”
What is pre approval loan? “A pre-approval loan is a type of loan where the bank has already determined that you will be approved for the loan. This means there is no need to go through an entire application process, and it can often save time and money.
A borrower who applies for a mortgage with a bank that does not offer prepayment loans may have to wait up to six months before being able to close on their home. By applying for a prepayment mortgage ahead of time, they can speed up this process by avoiding having to come back every day while still waiting on approval.
Prepayments are also known as “” accelerated payments””. These terms refer specifically to when repayments are due more frequently than annually”
What is sub prime loan? A subprime loan is a type of mortgage that banks offer to borrowers who have low credit scores, or no history of borrowing money. These loans carry higher interest rates and come with larger down payments. They’re designed for people who might default on their mortgages if they get hit with an economic downturn like the one we’ve seen over the past few years.