Sentences with phrase «costs if a loan defaults»

This insurance helps defray the lender's costs if a loan defaults.

This insurance helps defray the lender's costs if a loan defaults.

Not exact matches

The lending standards on equipment financing can be less strict because your equipment will be used as collateral for the loan — in other words, if you default, the bank has the right to seize your equipment to cover the cost of their lost money.

With mortgage insurance, you'll also pay into a pool to help the lender cover losses and costs if a homeowner defaults on their loan.

However, a secured personal loan will have lower interest rates, the reason being that if you default on the loan the lender will be able to take the property (real estate, stocks and bonds, late model car) you have signed over as collateral and sell it to cover the cost of the loan.

But, if the repayment terms are not good then the cost for the borrower can be exorbitant, pressure to meet repayment schedules can be high, and in the end the loan may be defaulted on.

If you default on the loan, the lender may seize that property and sell it to cover the costs of the loan.

No matter what loan you choose, make sure you read the entire agreement, especially the fine print, to understand how much it will cost you, how long you have to repay and what the penalties are if you default on the loan.

That said, they often come with high closing costs, and if you default on the loan, you could lose your house.

While the cost of placing your loan with a private collection agency is usually the largest collection cost you may face if you default, there may be other collection costs, such as Treasury offset processing fees and costs associated with potential civil litigation from the Department of Justice.

It is a closing and servicing cost used as insurance to protect the lender from any losses they might experience if the loan goes into default.

As we only have a one - off default charge of # 15, which is only payable if you miss a repayment, we can help to keep the cost of your # 300 loan down.

If you have fewer loans at higher investment costs, then Lending Club steps in with a «fake default» and steals your investment.

However, if rates run too high due to inflation, firms borrowing with floating - rate loans risk default as debt servicing costs rise precipitously.

While the borrower pays the premium — which can add thousands of dollars to the cost of buying a home — the insurance actually protects the lender if the borrower defaults on the loan.

Keep in mind that if you default on your student loan you could be sued for the full amount and find yourself liable for court costs, attorney fees and other associated collection costs.

Defaulting on the loan may incur even more fees, so also be sure to calculate the costs before applying if you think you might have trouble with repayment.

PMI guarantees that a mortgage company will recoup some of their costs if you default on your loan.

If your loan enters default at any time, we will be forced to liquidate a portion of your collateral in order to cover our principal cost and any unpaid interest.