School Loans — College loans work just like other types of loans, where you are given
money at a certain interest rate, and you make payments over time to repay the loan.
U.S. Bond — a kind of investment in which you lend money to the government for a certain amount of time and
at a certain interest rate.
If you go online, you can find free loan payment calculators that let you determine how much you will spend on a loan at a certain loan amount,
at a certain interest rate, over a certain repayment period.
The underwriter uses the borrower's liquid assets to show that over a specified amount of time and
at a certain interest rate, the liquid assets are capable of producing income for the borrower.
«Think of the lender buying buckets of money
at a certain interest rate and then reselling the money to the consumer,» says Lou Maldonado, an account executive at Plaza Home Mortgage's New York office.