Sentences with phrase «than the loan payment because»

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Despite their reduced initial payments, balloon loans are riskier than traditional installment loans because of the large payment due at the end.

This is different than a loan because your business doesn't acquire additional debt, there are no periodic payments, and the investor is willing to wait until a future date to capture some kind of return on their investment.

Bad loans as a share of their total portfolio remains low, at less than 2.5 percent, but economists believe the figure understates the problem because banks often extend the payment dates for problem debt.

That is where there is a margin call for payment because the value of shares is less than what person owes on them because of a loan with a margin between...

Keep in mind that just because a lender offers you a lower interest rate than you currently pay on your existing student loans doesn't mean your monthly payment will also be lower.

A fixed - rate mortgage is generally a safer bet than an adjustable - rate mortgage because you know what your interest rate will be for the length of the loan and your payments will stay the same for the duration of the mortgage.

But many borrowers can't afford the lump sum payment, so they roll over the original loan, plus the original fee plus a new fee, which is higher than the initial fee because the borrower owes both the principal plus that fee at this point.

This is good for first - time home buyers because FHA loans allow for a low down payment of just 3.5 %, which can help a household with good income but less - than - optimal savings move from renting into homeownership.

Mortgage insurance (MI) is almost always required by lenders when the down payment is less than 20 % because a loan with a low down payment is riskier and the insurance protects the lender if the home buyer defaults.

While today's low rates make the monthly payments on a 15 - year fixed rate refinance lower than ever before, the payments are higher than with a 30 - year loan because you are paying off the loan in half the time.

It's more likely that you can avoid mortgage insurance premiums (MIPs) with conventional loans than with government insured loans, largely because conventional loans require higher down payments.

PAYE differs from traditional Income - Based Repayment (IBR) because, depending upon the date your student loans were initiated, PAYE may cap loan payments at a smaller percent of income than IBR.

For example, a 15 - year mortgage will have higher monthly payments than a 30 - year mortgage loan, because you're paying the loan off in a compressed amount of time.

Because you're only paying off a portion of the vehicle's total value, monthly payments on a lease are much lower than what you'd be making on your average auto loan.

This is good for first - time home buyers because FHA loans allow for a low down payment of just 3.5 %, which can help a household with good income but less - than - optimal savings move from renting into homeownership.

Despite their reduced initial payments, balloon loans are riskier than traditional installment loans because of the large payment due at the end.

Remember that a bank won't refinance a loan that is larger than the car's retail value because that car's owner is more likely to stop making their payments.

Because of your larger payments and the lower interest you pay, your payments on a 15 - year loan go towards reducing the loan principal faster than payments on a 30 - year loan.

In other words, the delinquency percentage is down not because we have fewer borrowers making late payments or no payments but because the universe of loans is growing faster than the number of delinquent borrowers.

Because credit card debts are less set in stone than installment loan debt payments, your credit score can be more impacted by accumulating revolving credit debt.

Deferment is a better option than forbearance because interest does not accrue, as long as your loans are subsidized; that can save you money when it comes time to start making payments again.

Your monthly mortgage payment might be larger than your other loan payments, but, the interest payment is smaller in proportion because of the lower interest rates.

FHA Offers More Than Low Down Payments Sure, there are a number of borrowers who prefer FHA loans simply because of the low down pPayments Sure, there are a number of borrowers who prefer FHA loans simply because of the low down paymentspayments.

Here's the formula: Loan amount ÷ appraisal value or purchase price (whichever is less) For example: The home you want to buy has an appraised value of $ 205,000, but $ 200,000 is the purchase price The bank will base the loan amount on the $ 200,000 figure, because it's the lower of the 2 You have $ 40,000 for a down payment, so you need a $ 160,000 loan to meet the $ 200,000 purchase price Your loan - to - value equation would look like this: $ 160,000 ÷ $ 200,000 =.80 You multiply.80 by 100 % and that gives you an LTV of 80 % Private mortgage insurance (PMI) If your down payment is lower than 20 %, your loan - to - value ratio for conventional financing will be higher than 8Loan amount ÷ appraisal value or purchase price (whichever is less) For example: The home you want to buy has an appraised value of $ 205,000, but $ 200,000 is the purchase price The bank will base the loan amount on the $ 200,000 figure, because it's the lower of the 2 You have $ 40,000 for a down payment, so you need a $ 160,000 loan to meet the $ 200,000 purchase price Your loan - to - value equation would look like this: $ 160,000 ÷ $ 200,000 =.80 You multiply.80 by 100 % and that gives you an LTV of 80 % Private mortgage insurance (PMI) If your down payment is lower than 20 %, your loan - to - value ratio for conventional financing will be higher than 8loan amount on the $ 200,000 figure, because it's the lower of the 2 You have $ 40,000 for a down payment, so you need a $ 160,000 loan to meet the $ 200,000 purchase price Your loan - to - value equation would look like this: $ 160,000 ÷ $ 200,000 =.80 You multiply.80 by 100 % and that gives you an LTV of 80 % Private mortgage insurance (PMI) If your down payment is lower than 20 %, your loan - to - value ratio for conventional financing will be higher than 8loan to meet the $ 200,000 purchase price Your loan - to - value equation would look like this: $ 160,000 ÷ $ 200,000 =.80 You multiply.80 by 100 % and that gives you an LTV of 80 % Private mortgage insurance (PMI) If your down payment is lower than 20 %, your loan - to - value ratio for conventional financing will be higher than 8loan - to - value equation would look like this: $ 160,000 ÷ $ 200,000 =.80 You multiply.80 by 100 % and that gives you an LTV of 80 % Private mortgage insurance (PMI) If your down payment is lower than 20 %, your loan - to - value ratio for conventional financing will be higher than 8loan - to - value ratio for conventional financing will be higher than 80 %.

Because monthly payments are lower than they would be on a standard or graduated repayment plan for the life of the loan, borrowers pay more over the repayment period.

Because of the way car loan interest works, you pay greater interest charges with your monthly car loan payments early on in your car loan than near its end.

Payoff offers some services other P2P lenders can't match, such as flexible payments during job loss, but is more limited than most other P2P lenders because it only offers personal loans for the purpose of credit card debt consolidation.

Paying off student loans early provides a GUARANTEED rate of return, because you are definitely going to be paying less interest than if you went with just minimum payments.

A bad credit score makes life more expensive because it means you'll get higher interest rates on loans and credit, and may have to have a larger down payment for purchases than you would otherwise be required to have.

Because APR is calculated on a yearly basis, it will be higher than the interest rate for loans with frequent payments, short terms, or compounding interest.

Sometimes, by having multiple loans, you will be forced to pay more than 20 % of your income towards your debts because of the sum of all the minimum payments and because of the fact that you have a relatively low income because you are just starting out in your career.

The top mistake that consumers might make is accepting a debt consolidation loan because the payment is lower than what they're currently paying.

Primarily this is to make paying back their loans less complicated because managing one larger student loan is, obviously, easier than managing eight or ten smaller loans, each with their own payment, interest rates, etc..

Consolidated loans generally have a lower interest rate and lower monthly payments, but they can end up being more expensive over time because they offer a longer repayment period than the original loans do.

Lenders make you pay PMI because they consider a loan with less than a 20 % down payment somewhat risky.

FHA loans are much more suited to this type of home buyers because they allow for higher debt - to - income ratios, less than perfect credit history and lower down payment.

And even if you're a less - than - ideal home buyer, because of bad credit or lack of a down payment, they can actually help your loan go through.

These low - down - payment loans have waxed and waned in popularity over the years depending on what other loan products are available from lenders; but after the housing crisis, many borrowers turned to FHA lenders because FHA loan guidelines are generally looser than conventional loan requirements.

However, because of your lower payments up front, even with the higher payments at the end of the loan, you would have still paid less than using a fixed rate loan.

Borrowers are attracted to FHA loans because FHA's requirements in terms of credit guidelines are looser than the requirements for conventional loans, and these loans also require a down payment of just 3.5 percent.

If you are unsure about how much you can afford each month, then we would not suggest the 20 - year mortgage because the payments are higher than the 30 - year mortgage even though the home loan rates are lower.

Because IBR payments may be lower from time to time than the amount needed to pay off the loan, you may end a particular year owing more than you did at the start.

If you are a few months behind on your home loan payments and do not have more than 20 % equity in your home, consider a mortgage loan modification or forbearance, because refinancing and home equity lines will not be viable options for you in today's distressed financial market.

The number one reason borrowers default on their student loans is because the monthly payment is more than they can comfortably afford to make.

However, because federal student loans issued as of July 2006 have fixed rates, «There is no financial benefit to consolidating federal loans, other than having a single monthly payment and access to alternative repayment plans,» Mark Kantrowitz, publisher of FinAid, told Forbes.

Because FHA loans are government - insured, they have easier credit qualifying guidelines than most lenders, as well as relatively low closing costs and down payment requirements.

Because shorter - term mortgages have lower rates than longer ones do, and paying off a loan faster reduces interest compounding, the monthly payments for a shorter - term mortgage may be less than you expect.

Credibly, like most short - term lenders, expresses the interest payment for working capital loans and merchant cash advances as a factor rate, which can be deceiving because it looks much lower than an annual percentage rate (APR).

Some loans do not require private mortgage insurance to be involved; these are loans in which the borrower made a down payment of 20 % or more (because if the down payment is more than 20 % of the total loan amount, the borrower is not required to carry private mortgage insurance).

Variable - rate loans — Option Adjustable Rate Mortgages (Option ARMs) in particular — were especially attractive, because they carried higher fees than other loans and allowed WaMu to book profits on interest payments that borrowers deferred.