Sentences with phrase «lender makes a profit on»

Interest is one way the lender makes a profit on your loan.

Not exact matches

Lenders set their mortgage rates in order to offset the risk of borrower default, and also to make some profit on the loan (it is a business after all).

Many of the attendees were actually making trades on their Blackberry's as their guru spoke in tongues of sub prime lenders with supposed «moats» (durable competitive advantages) Finally, after 2 1/2 hours Chew lost his mind and after savagiung the false profit, began eating his young wannabe's.

The lender will add a margin on top of the reference rate that's aimed at offsetting the risk that the borrower won't repay the loan and to make a profit.

This is because lenders make a substantial portion of their loan profits on interest payments, and paying off a loan early eliminates this income stream for the lender.

However, lenders make bigger profits on subprime loans, interest rates are higher on subprime loans, subprime loans with high rates have been commanding higher prices in the secondary market and borrowers are dependent on loan officers to help them make financing choices — loan officers who get bigger commissions by marketing subprime loans.

In other words, if Lender Smith gets me the loan with the lowest rate, the fewest points and the lowest closing costs I'm interested, even if Smith makes a bigger profit than Lender Jones on the exact same loan, say a basic FHA mortgage.

So lenders have to charge higher fees to generate the same profit they would make on a larger loan.

If you default, the lender gets your car and sells it, recouping the money and making a profit on the deal.

Most lenders are of course banks, and it is not their ordinary course of business to make a profit on real estate.

Many of the attendees were actually making trades on their Blackberry's as their guru spoke in tongues of sub prime lenders with supposed «moats» (durable competitive advantages) Finally, after 2 1/2 hours Chew lost his mind and after savagiung the false profit, began eating his young wannabe's.

Only 5 weeks after buying the property from the other hard money lender, the new real estate investor had finished the house and sold it making $ 16,000 in profit on it!

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Lenders set their mortgage rates in order to offset the risk of borrower default, and also to make some profit on the loan (it is a business after all).

Mr. Sellers continues to make his 5.5 % monthly interest and principal payment to the original lender on the $ 70,000 mortgage and pockets the difference as profit.

In essence the lender is trying to insure that they make a significant profit on the loan.