Sentences with phrase «loan decreases the risk»

A fixed rate loan decreases the risk that your interest rates might rise in the future.

Including a cosigner on a loan decreases the risk for the lender because the lender has another person who is obligated to repay the loan if the borrower defaults.

Not exact matches

Most caps on variable interest rate student loans are roughly 8 - 9 %, which can help decrease the risk of a rising interest rate.

The company said it had been «at the finish line» in the loan guarantee process and that Constellation had withdrawn «in spite of our repeated efforts to substantially decrease their exposure and risk to the project.»

This discourages new investment, decreases wealth for many families who purchases second homes as a low - risk investment in lieu of savings, and can lead to an increase in loan defaults.

«Overall mortgage fraud risk, including subprime loans, has been steadily decreasing since 2006 and appears to have leveled off in 2009,» says CoreLogic.

Your loan's risk level decreases over the years as you pay down the original loan amount.

Crushing student loan debt ($ 1.3 trillion in the United States) has been known to contribute to increased financial stress and health risks of employees and decreased productivity in the workplace.

So long - term loans come with higher interest rates because far off conditions are hard to predict, and the increased rate helps to decrease the lender's risk of losing money.

This bank has run into a number of problems related to sub-prime loans so rather than continue to pay out the normal dividend and risk running out of cash, the company decided to decrease the amount of dividend.

The reverse mortgage called the Home Equity Conversion Mortgage (HECM) and traditional FHA loans are both federally insured, and require that borrowers pay a mortgage insurance premium in order to decrease risk to lenders if the homeowner defaults on the loan.

Older, cheaper vehicles present a greater risk to the car loan lenders, and decrease the likelihood of the buyer getting approved for a car loan with a fair interest rate.

Most lenders don't like to make small loans in this situation because it decreases the possibility of a profit and increases risk, Goodman said.

Because of the decreased risk to lenders, eligible borrowers may receive home mortgage loans with up to 100 % financing.

If risk was slowly and surely re-introduced to the student loan market the supply of new money would decrease, the demand for education would decrease and the prices would decrease, thus allowing more people to afford the education they want without the need for debt.

With uncertainty over Fed moves, there's also liquidity risk — if banks decide to stop making the large short term loans, the value of the underlying REIT will decrease.

If you're concerned about the risk of rising interest rates, many ARM loans have caps on how much the interest rate can increase or decrease.

The loans will help increase water efficiency and improve wastewater treatment in the Middle East and North Africa (MENA) by increasing the availability of drinking water, improving wastewater treatment infrastructure, reducing waste costs, and decreasing health risks to local communities.

For example, owning life insurance may enhance your financial stability when applying for a bank loan, because a death benefit may decrease your credit risk.

This can put your coverage at risk, as taking a loan from your non-GUL policy decreases your death benefit until the loan is repaid (with interest).

Decreasing Cover * - The Risk Cover or Sum Assured will reduce as per the Sum Assured Schedule (SA Schedule) derived using the Loan Interest Rate & the Coverage Term at the time of coverage inception.