Sentences with phrase «offsetting loan risks»

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).

This will help offset the risk of monthly student loan payments becoming unaffordable if your variable rate increases.

Be aware that jumbo loans have higher interest rates to offset the added risk on the part of the lender.

As a result, jumbo loans come with higher interest rates to offset that risk.

Such options often include local automobile dealers and / or local finance companies which are likely to charge them higher interest rates to offset the higher risk of them defaulting on loans.

Jumbo loans are nonconforming loans that come with higher interest rates to offset the increased risk on the part of lenders who issue them as more money is at stake.

For younger students, who do not have sufficient credit history, monthly payments on private student loans could be hardly bearable, as the interest rate set by lenders is typically very high to offset potential risk of default.

Mortgage insurance also helps the lender offset risks and allows them to make loans to buyers who can only offer smaller down payments.

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.

Generally speaking, a better credit history will result in a lower interest rate on the loan, whereas a credit history with past due payments, previous defaults, and collections will often lead to a higher interest rat, to offset the lender's increased risk in offering credit to a borrower with poor credit.

Because of the risk of default, lenders may also want to charge higher for the loans in order to offset any losses they encounter.

(NOTICE: If you are nearing default on your student loans, you may be at risk for a student loan tax offset.

PMI is an added monthly expense required for conventional loans and FHA loans where the borrower finances more than 80 % of the home's value to offset the lenders risk.

Once again, while banks are sufficiently capitalized to retain loans on their books, smaller lenders are not and thus would need to increase mortgage lending rates to offset additional risk, thus increasing costs to consumers.

Auto loans are secured loans, meaning the value of your car acts as security against you defaulting on the loan (i.e., if you can't pay them back, they take your car to recoup the loss), offsetting some of the risk.

When these credit factors are not strong, a private student loan lender may require a co-signer to help offset the risk of default in the future.

These borrowers are associated with a higher risk of defaulting on their loan payments or on the loan as a whole, and to offset that risk they will be charged much higher interest rates than traditional mortgages.

The other way that investors can offset risk and still make Super-Jumbo Loans is to have a higher interest - rate.

The government needs to make larger fines to offset the incentive to produce high risk loans.

However, for borrowers requesting a larger than normal loan amount ($ 10,000 or more), we may request a GPS tracking device be installed to offset our risks.

Many bank loan underwriters can not get past a bad credit score to look at the positive factors that could offset the risk in a loan.

Collateral is a driving force in issuing loans to individuals and businesses and is used to offset the risk assumed by lenders should the borrower default.

Collateral is an item of tangible value which is utilized when procuring a loan to offset the risk a lender assumes should the borrower default.

Be aware that jumbo loans come with higher interest rates to offset the added risk.

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).

To offset this increased risk, lenders will use some variation of a sliding scale to reduce a loan in proportion to a property's value when it exceeds a certain dollar amount.

Banks are taking on a bigger risk by issuing these larger loans and so the higher interest is meant to offset that risk.