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Long term loan vs short term loan?

Updated: 9/14/2023
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With long term loans, borrowers can take a longer period of time to start paying of their loan. Whereas with short term loans, the borrowing time is usually no more than two weeks because the borrowers typically use short term loans to cover their extra expenses between paychecks - after borrowing the money they use their next paycheck to pay back the short term loan.

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What is a Term A vs Term B loan?

When the 'primary' lender decides to syndicate the loan, it always/(usually?) maintains a portion of the loan for its own account (the "A loan"), while selling participations in the remainder (the "B Loan"). The primary lender is the sole contractual lender, acting on behalf of both itself and the B loan participants. Normally there is a single loan agreement between the primary lender and the borrower for the full amount of the financing to be provided by the primary and the participating institutions. It encompasses both the A and B loans, although the tenors of the two loans may differ.


How do you get short term title insurance?

Owner's Title Policy is good for as long as you own the property. Lender Title Policy is good for the life of the loan. Construction Title Policy is good during the construction period of the property through completion and typically only issued to the Builder during construction time. Therefore, if you bought a property, held it for 30 days and sold it, the Owner's Policy would insure you during that period and if there was a loan, the Loan Policy would insure the lender during that period. Since the life of the policy is good until the property is re-conveyed (new deed) or refinanced (new lender), YOU determine the length of term when changing one of the 2 conditions. If you are asking is there a discounted rate on title for holding a property for a short amount of time or flipping the property? The answer is "possibly". If the Seller has an Owner's Policy issued within the last 10 years from time of new sale, most states offer a re-issue rate vs basic rate ONLY if that Owner's Policy is provided to the title agency at the time the new title insurance is requested. NOTE: The reissue rate is availabe regardless of how long you keep the property, long or short term, as long as the prior Owner Policy is provided.


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How do you get short term title insurance?

Owner's Title Policy is good for as long as you own the property. Lender Title Policy is good for the life of the loan. Construction Title Policy is good during the construction period of the property through completion and typically only issued to the Builder during construction time. Therefore, if you bought a property, held it for 30 days and sold it, the Owner's Policy would insure you during that period and if there was a loan, the Loan Policy would insure the lender during that period. Since the life of the policy is good until the property is re-conveyed (new deed) or refinanced (new lender), YOU determine the length of term when changing one of the 2 conditions. If you are asking is there a discounted rate on title for holding a property for a short amount of time or flipping the property? The answer is "possibly". If the Seller has an Owner's Policy issued within the last 10 years from time of new sale, most states offer a re-issue rate vs basic rate ONLY if that Owner's Policy is provided to the title agency at the time the new title insurance is requested. NOTE: The reissue rate is availabe regardless of how long you keep the property, long or short term, as long as the prior Owner Policy is provided.


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