Sentences with phrase «loans are less of a risk»

They do not offer financing; their program is an assurance to lenders that the loan is less of a risk since it's backed by the government.

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.

And while federal loans come with their own set of challenges and risks, all 1.37 million private loan borrowers are often subject to fewer protections and less flexible repayment plans than those offered under federal loan agreements.Less accommodating repayment options and more rigid terms can quickly lead to private student loan defaults, which is a dangerous financial place to be.

Borrowers with private loans that are delinquent are at less risk of having their refund garnished.

When lenders are more confident about your ability to pay back the loan, they view lending to you as less of a risk.

There's a bigger risk of defaulting on a renovation loan when you have less money invested in your home.

As Santander, Cap One and other lenders are increasingly targeting the super-prime, non-lease, lesser - risk customer, we've not seen the end of outrageously extended terms on auto loans.

While private loans may enjoy lower rates during low interest rate cycles, the fact is that there's always a risk of rate level changes, and the possibility that rates jump up at some point, making payments less affordable or comfortable.

The security of the source of income also means that the interest charged on a military loan can be lower, since the risk is so much less.

There's a bigger risk of defaulting on a renovation loan when you have less money invested in your home.

Short term loans are fast and easy to secure, and as you are agreeing to pay the money back fast, they are less of a risk for the lender.

Those who are granting a loan absorb less financial risk when potential buyers are able to put a significant amount of money down.

At a loan - to - value ratio of 70 % to 80 %, lenders are much more likely to extend credit — as they are taking less risk.

To take the above example further, it's likely to make even more sense to pay less on student loans when you're at risk of missing payments or defaulting on your loans.

You could maybe do this with another less restrictive / higher risk type of loan but rates will be a lot higher (think 5 - 6 % instead of 1.5 %).

Having a cosigner reduces the risk the lender is taking when loaning you money, and thus makes your interest and thus the price of your car, less.

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.

The problem with the current system is that the originators of mortgages have been able to offload a large part of their risk onto unsuspecting investors, in some cases by bundling less desirable riskier loans together with solid projects and selling the whole thing as a safe investment.

Those who inhabit lower credit tiers represent a high level of risk, because they are statistically less likely to repay loans and credit - card charges on time.

The idea here is that the more experience you have with such things as loans and credit cards, the less risk you will be down the road and you will be familiar with how to manage those two different types of credit.

If you only have private student loans, there's less of a risk.

If you are looking for an example of a way to borrow that involves less risk then consider taking out a loan to invest in an RRSP.

Higher scores show that an individual is less of a credit risk, and therefore a better candidate for the bank to trust with its loan.

These loans generally have maturities of less than ten years and provide risk adjusted returns that are far superior to investments with comparable safety.

Since most of the applicants do not fit the low - risk borrower profile that lenders prefer, most traditional lenders decline loans and bad credit, high risk borrowers have to resort to sub-prime lenders that are prepared to offer mortgage loans to those with a less than perfect credit score.

Well, lenders make money by charging interest and if there a lower balance to attach interest to, they make less money for the same amount of risk (upon the loan being issued).

Credit card debt, on the other hand, is a type of unsecured loan that presents a lot less risk because worst case scenario is that your rating and score will suffer a bit.

In the past, large - balance borrowers posed less of a risk to taxpayers and were unlikely to struggle with their loans because most went to graduate or professional schools, borrowed modest amounts and had strong labor market outcomes.

Typically, the lenders will be a bit more forgiving with credit scores than 125 % loans because there is less of a risk.

If you're less of a risk, your interest rates aren't going to be as high, and you're going to have a better chance of getting a less expensive 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.

You can lose the amount of the loan (your investment) if the company or governmental body fails, but the risk of loss to creditors (bondholders) is generally less than the risk for owners (shareholders).

However, because ABS bundles are often a mixture of stable yet less profitable prime loans and the riskier yet more lucrative sub-prime loans, they do have some risk to them.

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

If your credit score is below 650, lenders will see you as a high risk, which means a lesser chance of getting a loan approved.

For these individuals, seeking financing and loans will be easier than ever, as lenders will see them as less of a risk.

There are less borrowers with High Risk credit getting loans, now requiring a FICO score of 640 or higher.

And while federal loans come with their own set of challenges and risks, all 1.37 million private loan borrowers are often subject to fewer protections and less flexible repayment plans than those offered under federal loan agreements.Less accommodating repayment options and more rigid terms can quickly lead to private student loan defaults, which is a dangerous financial place to be.

And while federal loans come with their own set of challenges and risks, all 1.37 million private loan borrowers are often subject to fewer protections and less flexible repayment plans than those offered under federal loan agreements.

Since the Federal Government backs this type of loan, the lender is protected from default, so there's less risk when handing out a VA loan, which means lower interest rates for the borrower.

The most recent cuts, in the College Cost Reduction and Access Act of 2007, when combined with the savings from the Ensuring Continued Access to Student Loans Act of 2008 (ECASLA), caused the FFEL program to cost less than the Direct Loan program in FY2008 on a per - dollar - lent basis even when certain types of high - risk consolidation loans are excluded from the analLoans Act of 2008 (ECASLA), caused the FFEL program to cost less than the Direct Loan program in FY2008 on a per - dollar - lent basis even when certain types of high - risk consolidation loans are excluded from the analloans are excluded from the analysis.

In the past these tighter rules targeted risker, high - ratio mortgages, but the government is extending some of these same rules to less risky low - ratio loans.

This is a type of secured loan that presents less risk and high approval rates.

All in all, in a market where banks have only recently returned to issue new leveraged loans, investors are poised to pick up the slack and achieve returns greater than a similar maturity mix of corporate bonds with less intermediate risk.

The advantages of an amortization loan is that there is much less of a credit risk and there is also much less of an interest rate risk because the loan is paid quicker so there is less effect from the interest rate.

Because you are seen as less of a risk, you are eligible for better loan terms, and can save a great deal of money.

Essentially, auto loans are secured loans, with the vehicle itself acting as a sort of collateral against default (i.e., if you don't pay back your loan, the lender can sell the car to get their money back), which means less risk to the lender.

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.

Borrowers with private loans that are delinquent are at less risk of having their refund garnished.

«If you think about a bank that is lending 90 percent against a house, versus a broker - dealer taking in 102 percent against a loan of a security, the broker - dealer's credit risk is exponentially less,» Lofchie said.