Other Words For A Loan Agreement

Capital and interest/income ratio: the ratio, expressed as a percentage, when a borrower`s proposed capital and interest costs are divided by the gross monthly household income. The maximum allowable rate for MOP loans is 40%. Also known as the P&I ratio. Total debt-to-income ratio: the ratio, expressed as a percentage, that results from the division by gross monthly income of a borrower`s total debt, including the proposed mortgage capital, interest, taxes and insurance, and any recurring monthly debts (such as credit card payment, student loans, mortgages and car loans). The maximum allowable rate for MOP loans is 48%. Yes, if you select „Uncertain” as the contract signing date, a blank line will be inserted into the contract so that you can add the correct date after the document is printed. Fixed-rate loan: a non-amortizing loan in which the lender receives interest during the term of the loan and the principal is repaid at maturity in a lump sum. I Owe You (IOU) – The acceptance and confirmation of money lent by one party (1) to another. As a rule, there are no details on how or when the money is repaid or lists interest rates, payment penalties, etc. Prior Authorization: a certificate of prior authorization issued by the Office of Loan Programs, attesting that a borrower`s credit, wealth, and income have been verified and that the applicant qualifies for a program loan at a specified amount and interest rate. At the time of prior authorization, the initial interest rate indicated is not „frozen” and may therefore change before a letter of credit is issued. The initial interest rate is the interest rate of the program in effect at the time of the division of a credit commitment.

Final settlement statement (or final statement): financial information that provides a balance sheet of all funds received and paid at the close of the credit. Also known as HUD 1 Closing Statement. Depending on the loan selected, a legal contract must be established with the terms of the loan agreement, including: Processing: preparing a mortgage application and supporting documents for examination by a lender. In the event that the borrower is late in the loan, the borrower is responsible for all costs, including any attorney`s fees. In no case is the borrower always responsible for the payment of principal and interest in case of delay. . . .