Mortgage

Best answer: For which buyer would a lender most likely approve a $200,000 mortgage?

For which buyer would a lender most likely approve a $200,000 mortgage? income and total debt. $20 per year until the loan is paid off. paying bills when they are due.

What is the compound interest on a three year $100.00 loan?

Answer: The compound interest on a three-year, $100.00 loan at a 10 percent annual interest rate is $ 33.1.

What best determines whether a borrowers interest rate?

As we alluded to, the factor that best determines whether a borrower’s investment on an adjustable-rate loan goes up or down is the current market. The market’s condition drastically impacts the rate of investment.

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Which describes the difference between secured and unsecured?

Which describes the difference between secured and unsecured credit? Secured credit is backed by an asset equal to the value of a loan, while unsecured credit is not guaranteed by a material object.

Which describes the difference between secured and unsecured credit secured credit is backed by an asset equal to the value of a loan while unsecured credit is not guaranteed by a material object?

Unsecured credit is backed by an asset equal to the value of a loan, while secured credit is not guaranteed by a material object. Secured credit is risky because banks cannot seize assets, while unsecured credit is less risky because it is backed by material objects.

How much money would you have after one year if you started with $100 and earns 10% interest?

If you were to gain 10% annual interest on $100, for example, the total amount earned per year would be $10. At the end of the year, you’d have $110: the initial $100, plus $10 of interest. After two years, you’d have $120.

How do you figure out an interest rate?

  1. Step 1: To calculate your interest rate, you need to know the interest formula I/Pt = r to get your rate.
  2. I = Interest amount paid in a specific time period (month, year etc.)
  3. P = Principle amount (the money before interest)
  4. t = Time period involved.
  5. r = Interest rate in decimal.

What is a good APR for a house loan?

What Are Today’s 30-Year Fixed Mortgage Rates? On Sunday, September 12, 2021 according to Bankrate’s latest survey of the nation’s largest mortgage lenders, the average 30-year fixed mortgage rate is 3.010% with an APR of 3.220%. The average 30-year fixed mortgage refinance rate is 2.990% with an APR of 3.140%.

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Which formula should be used to correctly calculate the monthly mortgage payment?

Use the formula P= L[c (1 + c)n] / [(1+c)n – 1] to calculate your monthly fixed-rate mortgage payments. In this formula, “P” equals the monthly mortgage payment.

What is good credit scores?

Although ranges vary depending on the credit scoring model, generally credit scores from 580 to 669 are considered fair; 670 to 739 are considered good; 740 to 799 are considered very good; and 800 and up are considered excellent. … That means the credit scores they accept may vary depending on that criteria.

In which loan interest is high secured or unsecured?

Unsecured loans, like the name suggests, is a loan that is not secured by a collateral such as land, gold, etc. These loans are comparatively riskier to a lender and therefore associated with a high interest rate.

Which do lenders take into account before issuing unsecured debt?

“Creditworthiness” is the one among the following choices given in the question that lenders take into account before issuing unsecured debt.

Which is more advisable to use a secured loan or an unsecured loan?

A secured loan is normally easier to get, as there’s less risk to the lender. … That means a secured loan, if you can qualify for one, is usually a smarter money management decision vs. an unsecured loan. And a secured loan will tend to offer higher borrowing limits, enabling you to gain access to more money.

Why would a bank be more likely to make a loan to someone with a FICO score of 750 rather than someone with a score of 500?

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Explanation: Fair Isaac Corporation scores are used to measure the creditworthiness of a borrower. The higher the credit scores, the higher the chances of the borrower paying back what was borrowed.

Which is an example of closed end credit?

Common types of closed-end credit instruments include mortgages and car loans. … For example, if a customer fails to repay an auto loan, the bank may seize the vehicle as compensation for the default. The difference between closed-end credit and open credit is mainly in the terms of the debt and the debt repayment.

Which is an example of easy access credit?

Pawnshops, payday loans, rent-to-own, and title loans are all examples of easy access credit and how people can get fast cash. Using these services can make a bad financial situation worse, and habitually using them can create a cycle of bad debt that can be difficult to escape.

How much money do I need to invest to make $5000 a month?

If you want to save $5,000 per month, think about what your income and expenses are and start saving the difference. Honestly, if you want to reach this $5,000 mark, you’ll likely need to be earning around $10,000 per month.

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