The biggest factor that affects how affordable or expensive a home loan is is the interest rate… at least that is what we have been let to believe.
Just like how some might think that the cheaper of two different car listings of the same model on a used car portal is more affordable.
But as we all know that is not the case.
An exculpatory clause contained in a loan contract is a provision that relieves the borrower from any personal liability.
This means that should a borrower default on a mortgage, the most that the lender can do is foreclose the property to recover the debt.
Should the sales proceeds be insufficient to fully settle the outstanding debt, there is no other legal avenue for the lender to pursue the borrower for the shortage.
Admitted assets is a class of assets that are permitted by local state laws to be included in an insurance company’s annual financial statements.
Regulations might include a required list of admitted assets. These might also include guidelines on how assets should be valued and how ceilings are determined.
The purpose of these regulations is to enable regulators to measure the level of solvency of an insurance company operating under their jurisdiction. This in turn, is to ensure that these financial institutions are not in danger of collapsing as the products they sell affects the lives, and sometimes livelihood of people.
A lock jumper is a slang used to describe borrowers who allow a lock on interest rates to expire so as to obtain a new lock at a new lower rate because interest rates have declined.
It would be ridiculous to accept a loan at 2% when the current rate is 1%. This is especially so when the terms allow one to play the expiry game without incurring any penalty charges.
Lenders usually encounter these scenarios more often with homeowners who are seeking refinancing rather than home buyers.