Sentences with phrase «because borrowers»

The holiday adjusted numbers may overstate the level of refinance applications because some lenders who rely primarily on the internet / consumer direct channel for originations saw little if any decline in applications for Labor Day as compared with the drops for lenders relying on retail offices, perhaps because borrowers had additional time over the Labor Day weekend to complete online refinance applications.

The profit margins for those originating subprime FHA mortgages are three or four times as large as those on other mortgages because the borrowers view themselves as dependent on the originator who solicited them.

The very term, «no - cost» loan, is misleading because borrowers are actually paying a higher interest rate in exchange for not having to pay fees or closing costs up front when the loan is secured.

However, because these borrowers may be desperate for a loan, the non-conforming loan market makes it easy for unscrupulous «predatory» lenders to deceptively convince borrowers to agree to unfair and abusive loan terms.

Higher limits are important, especially in high - cost markets, because borrowers enjoy substantially lower financing costs with these products than with jumbo and other nonconforming loans.

Because borrowers are making relatively low interest payments on long - term loans, they tend to be well positioned in terms of cash flow to pursue mezzanine financing, says Don Moses, director of structured finance in the San Francisco office of Chevy Chase, Md. - based Capital Source Finance.

Cost overruns tend to come about because borrowers have a tendency to change their minds about what they want as construction proceeds.

Social lending groups are an attractive source for business loans because borrowers can present their loan proposals to multiple lenders, increasing their chances for approval.

Prestige says its loans experience relatively low losses because borrowers have discharged many of their other debts in bankruptcy, freeing up more cash for their car payments.

Private student lenders and student loan refinance lenders can not evaluate their credit risk because the borrowers may not have a track record of paying bills on time, or for borrowing money and repaying it.

Auto title loans are «incredibly dangerous» because borrowers continue to pay fees to extend and end up paying out far more than they expected or planned for, says Saunders.

Many borrowers have been turned down by lenders because of property value and they do not realize that the FHA streamline does not require an appraisal so there really isn't much of a Loan to Value issue, because borrowers are stating their home values to some degree.

And now, both forms of credit (as well as commercial paper issuance) are declining because borrowers are saturated with debt and lenders are increasingly skittish of credit risk.

Subprime lending is riskier, because borrowers are more likely to default.

«This is consistent with the narrative that, if you're a very safe borrower or a large corporation, it is very easy for you to get a loan — in fact there is a lot of competition because these borrowers have access to lots of nonbank sources,» Covas said.

This is because borrowers who choose to waive escrows are often charged a small fee, or are shown a slightly higher mortgage rate, to compensate the lender for its additional risk.

Some private lenders have lowered rates for their most creditworthy customers because borrowers have been very good about paying the money back.

To be sure, gauging enrollment in PSLF is tricky because borrowers can retroactively claim benefits for work and payments as far back as 2007.

The risk of default by borrowers that issue below investment - grade securities is significantly greater than other borrowers because these borrowers are often highly leveraged and more sensitive to adverse economic conditions, including a recession.

Variable - rate mortgages are dangerous in the hands of unaware borrowers because these borrowers may fail to look beyond the entry period.

In fact, after the subprime mortgage crisis of 2007 - 08, they became known as «liar loans,» because borrowers and lenders were able to exaggerate income and / or assets to qualify the borrower for a bigger mortgage.

It is called an open loan because borrowers can end early if they are willing to pay a penalty of three months interest as indicated in the mortgage.

The Charlotte Observer claims that reverse mortgages are «often misunderstood» because borrowers don't realize that the money has to be paid back.

Because borrowers with better credit scores and debt - to - income ratios tend to be lower risk, they are offered the lowest interest rates — currently about 4 % for a 30 - year fixed rate mortgage — which can save tens of thousands of dollars over the life of loan.

In general, this is because borrowers with lower credit scores are more likely to make late payments, miss payments or default.

But we must also consider the possibility that because borrowers are largely unprotected against potentially predatory lenders, these complaints are valid — and may be a sign of a coming scandal.

Bi-weekly plans help consumers pay off their mortgages early because the borrowers make two extra payments a year and more frequent payments result in interest savings.

FHA loans are suitable for buyers who have little money saved because borrowers can qualify for home loans for as little as 3.5 % down.

More educated decisions can lead to a reduction in unpaid debt because borrowers can understand the terms of the loan more easily.

This is because borrowers can get interest rates based on their personal circumstances, such as their credit rating.

It's important to note here that most student loan scams affect borrowers in default because the borrowers are hoping for a magic bullet to solve their debt problems.

Perhaps more complaints were filed regarding private student loans because borrowers were frustrated with the lack of flexibility and repayment options available to them.

Nearly a quarter of people who apply for loans are turned down, according to the Federal Reserve because borrowers with one or two blemishes on their credit are being denied credit.

Because borrowers are still making payments on these loans, ratings firms that are reviewing the bonds have begun to downgrade them.

Established forms of low - mod lending fit in with the bank's goal of «one base hit at a time» growth because borrowers in these categories tend to be people who don't have a lot of money to immediately spend on financial services at the outset, but their net worth has the potential to increase slowly over time.

In recent years, jumbo loan mortgage rates have actually been running a bit lower than conforming mortgage rates, because the borrowers are seen as more financially secure.

Because borrowers are not required to make any payments, the interest accrues on the balance and the entire loan is paid back when the last borrower permanently leaves the home, the younger a borrower is, the less they will receive under the program based on the HUD calculator.

(Some borrowers consider consolidation loans to save money because the borrowers can then choose an extended repayment term, which reduces the monthly payment.

Because borrowers are more likely to default on their loans than lenders, Private Mortgage Insurance has become a popular way to keep from defaulting on a loan.

They do this because borrowers who have bad credit often have a history of not paying loans on time or have made multiple unsuccessful loan inquiries.

Because borrowers with great credit are more likely to qualify for a lower rate, Peerform is the better option in this scenario.

Investors and Borrowers come to Lending Club because borrowers are able to obtain better rates and investors are able to receive a better return for such a low risk investing option.

This is because borrowers pay less over time with a standard repayment plan, given that no unpaid interest is capitalized back into the loan each year.

Unlike regular «forward mortgages,» a reverse mortgage is essentially a huge negatively - amortizing loan — the loan balance increases because borrowers are not making monthly payments — it follows that if the loan balance increases and the value of the property declines then the FHA can be stuck with big insurance claims.

Interest - only mortgages promise low initial payments because borrowers repay none of their debt for the first several years.

Because some borrowers may not put the cash back into home improvements, a cash - out mortgage introduces greater uncertainty about the borrower's intentions.

They are popular because borrowers feel a sense of security knowing that the principal and interest portion of their monthly mortgage payments will remain consistent throughout the lives of their loans.

These «80-10-10» loans were popular for awhile because borrowers could make a down payment of 10 percent and finance the rest of their home purchase with two mortgages, skipping PMI payments altogether.

Not only does it save money upfront for the borrower, it is also beneficial from a taxation point, because both borrowers can avail deductions for interest payments under Section 24 of IT Act and under Section 80 C of IT Act for the principal being repaid.

Moreover, just because borrowers have not defaulted within four years does not mean they are out of the woods.