Loans.QandAs.com

What is Loan Deferment?

Thu, 18 Jun 2009 04:13:14 +0100

Answer: The most common type of loan deferment, and the type that many people are familiar with, is the deferment of student loans. Basically, deferring a loan involves putting off the payments for a set time period, with no penalties. Student loans are often deferred when a student returns to school.

What is Loan Delinquency?

Thu, 18 Jun 2009 04:10:19 +0100

Answer: Loan delinquency is one step before defaulting on a loan. Whether it be a mortgage, a car loan, or a student loan, it is extremely important that the borrower make payments on time. Failure to do so can not only lead to late fees, but also put a stain on the borrower’s credit report.

What is Loan Default?

Thu, 18 Jun 2009 01:31:34 +0100

Answer: When a person borrows money, he or she typically signs a loan agreement, which states the terms of the loan. This contract includes the interest rate, monthly payments, and length of the loan. If the borrower fails to repay a loan according to the terms agreed upon, he or she is in loan default.

What is a Prepayment Risk?

Wed, 17 Jun 2009 22:50:28 +0100

Answer: Prepayment risk refers to the risk to a lender or investor to not receive the expected result from a financial transaction. The risk is different depending upon if it is regarding the lender or investor.

What is an Apartment Loan?

Wed, 17 Jun 2009 21:19:24 +0100

Answer: Most people are familiar with home loans, since most homeowners needed to borrow money in order to purchase their home. Another type of real estate loan that is not as common is an apartment loan. This is a loan that is used by real estate investors or property management firms to buy units in an apartment complex.