Sentences with phrase «less risk to the lender because»

Government Guaranteed: In reference to USDA (Rural development mortgage guaranteed by the Federal government) loans which the USDA will repay in the event of a default and VA (Veterans Affairs guaranteed) loans which the VA will repay in the event of default, offer 100 % financing options but with less risk to the lender because of the government guarantees.

Not exact matches

Interest rates on 15 - year mortgage terms are typically lower than those on longer - term loans because the shorter duration of the loan makes it less of a risk to the lender.

That's because there is more risk to the lender when you put less money down.

In addition to the savings resulting from a shorter term, interest rates on a 15 - year loan also are slightly lower than those for a 30 - year loan because your lender incurs less risk with a shorter loan.

A secured loan, on the other hand, presents less of a risk to the lender because it is secured against a piece of valuable property — generally a house — that can be seized should a borrower fail to pay.

They are usually easier to get because the Government insures the loan so that there is much less risk to the lender.

However, lower income customers tend to pose a higher risk for lenders because they are less likely to be able to repay a loan.

The reason for this is that you are able to borrow a larger sum of money than most other loans offer and you will usually pay a lower interest rate than with other lines of credit or other loans because there is less risk for your lender.

Because of this increased risk, a lender is less likely to approve as much as a secured loan.

A HELOC poses less risk to the lender than an HEL because the total value of the equity is not cashed out all at once.

That's because lenders view them as a potentially bigger risk, compared to a borrower with less overall debt.

This is contrary to how most collateral backed loans work as the lender assumes significantly less risk because of the ability to take possession of the vehicle so in reality the interest rate should be significantly reduced.

Loans that fail to qualify as QMs would be less available and far costlier because lenders and investors would face a much greater risk of violating the terms of the new ability - to - repay requirement.

In general, lenders prefer loans with low LTV because loans with low LTV represent less risk to the bank.

«The ultimate winner will be customers, because the more clarity a lender has on what it takes to get a loan, the less risk the lender has to take.»