Parent PLUS loans are not forgiven after 20 years unless the borrower qualifies for Public Service Loan Forgiveness (PSLF). To be eligible for PSLF, parents must consolidate their PLUS loans into a Direct Consolidation Loan and work in a public service position while making 120 qualifying payments. However, if the borrower does not meet PSLF…
An APR on a car loan is the Annual Percentage Rate, which includes the interest rate and certain fees associated with the loan. It represents the total borrowing costs each year of the vehicle loan. When purchasing a car, understanding the APR is crucial as it directly impacts the overall cost of the loan. A…
Foreclosure out of market means a property that is not listed for sale. It may be off the market temporarily or not for sale at all. Off-market properties can include foreclosures, short sales, and bank-owned homes, which are not actively listed on the Multiple Listing Service (MLS). These properties can be found through real estate…
Yes, a charged off auto loan can be reinstated by making up the past due payments and covering repossession and storage costs incurred by the lender. Reinstating the loan involves bringing it current by paying all outstanding payments, interest, penalties, and repossession costs. Are you currently facing the challenge of a charged off auto loan…
A Certificate of Eligibility (COE) is a document confirming eligibility for a VA loan. It’s issued by the Department of Veterans Affairs. Obtaining a Certificate of Eligibility (COE) is a crucial step for individuals seeking a VA loan. This document, issued by the Department of Veterans Affairs, validates the borrower’s eligibility for the loan program….
Mortgage processors gather and organize loan application paperwork for approval by the underwriter. They play a crucial role in the mortgage approval process by ensuring accuracy and compliance with regulations. Mortgage processors are essential in the loan approval process, responsible for gathering and organizing the necessary documentation to secure a mortgage. They work closely with…
When you have a mortgage, you pay interest on the amount of the loan that you haven’t yet repaid to your lender. There are fixed-rate mortgages with a constant interest rate and adjustable-rate mortgages with a changing interest rate over time. Understanding how home loan interest works is crucial for anyone considering a mortgage. When…
A deferment loan is a temporary postponement of monthly loan payments. It allows borrowers to reduce or delay repayment for a specified period, preventing the loan from defaulting but potentially increasing the overall loan cost. Student loan deferment provides borrowers with temporary relief from making monthly payments, often due to specific circumstances such as reenrollment…
To get working capital, consider small business loans, lines of credit, or merchant cash advances. These provide funding for daily operations. Small businesses often use these options to cover operational expenses. However, choosing the best option can be challenging. There are many types of business loans available, including term loans and business lines of credit….
Yes, you can use land as a down payment through a method called “land in lieu” financing. This arrangement is commonly used for financing a manufactured or construction home on land already owned. Land equity can be leveraged as collateral to secure a loan, with the land’s value serving as the down payment. When considering…
A mortgage note is a legal document that outlines the terms of a loan secured by a mortgage. It includes the borrower’s promise to repay a specified sum of money plus interest at a specified rate and length of time. When purchasing real estate, a mortgage note plays a crucial role. It is a written…
A CEMA, or Consolidation, Extension, and Modification Agreement, is a loan option that can reduce mortgage refinance costs. It allows borrowers to pay mortgage recording taxes only on the difference between their current principal balance and their new loan amount. In New York, CEMA loans are commonly used to save money on mortgage taxes during…
Yes, you can refinance a USDA mortgage. Refinancing a USDA mortgage can help lower your interest rate and monthly payments, giving you potential long-term savings. Refinancing a USDA mortgage can be a smart financial move. By taking advantage of lower interest rates, you can potentially reduce your monthly payments and save money over the life…
A subvented lease is a type of closed-end lease that includes discounts or incentives, such as a lower interest rate or inflated residual value of the vehicle, resulting in a smaller monthly payment. It is a lease offered by a manufacturer with special incentives to make it more appealing to consumers. When looking to lease…
Parent loans, specifically the Parent PLUS Loan, are federal loans available to parents of undergraduate students to help cover education expenses. These loans are part of the Federal Direct Student Loan Program and can be used to pay for the educational costs not covered by other financial aid. Parents must meet certain eligibility criteria, including…