0
It's when a bank reduces the balance on your mortgage whether on their own accord or through a company that does that for a living. Either way, you end up owing less.
Wiki User
∙ 14y ago
Add your answer:
Earn +20 pts
What is the purpose of a loan modification?
A Loan Modification is a process where the terms of a mortgage are modified outside the original terms of the contract agreed to by the lender and borrower. This could result in: * reduction in interest rate, or a change from a floating to a fixed rate, or in how the floating rate is computed * reduction in principal * reduction in late fees or other penalties * lengthening of the loan term * capping the monthly payment to a percentage of household income * mortgage forbearance program
What is a straight term mortgage?
When you pay the the interest in the beginning and later pay the principal
Term describes the right of a lender to sell collateral to get back the principal if the borrower cannot repay the loan?
Lien is the term
How The Interest Rate On Business Loan Is Calculated?
Interest rate on business loanis calculated on a decreasing balance technique: the principal gets decreased following every repayment term and the interest is calculated on the outstanding principal at the end of the term.
How Information Technology has affected the banking industry?
The business impacts of information technology, deregulation and globalisation on the structure of the banking industry is analysed. It is shown how these forces are combining to create an unstable banking environment in which new entrants and innovation are reducing the income streams of banks. The dynamics of the banking industry are related to the reduction in revenues and it is postulated that the global banking industry is entering into a spiral of decline. The strategic responses of the banks, particularly the trend towards mega-mergers and internal cost-cutting, are shown to be insufficient in the long term to offset the reduction in income.
What does the term principal reduction mean?
it means that you are reducing the amount of your original loan on the principal of your property....it's usually the amount less interest paid monthly that you are reducing.........thus the principal is reduced by that amount
What does the term ISI mean when use with a child abuse charge?
for the charge of child abuse ISI (principal), what does that mean? what is the ISI and principal for?
When banks is about to collapse?
There are many things that make a bank collapse. First indicator is that short term assets don't cover short term liabilities. Reduction in dividends paid may indicate a weakness. Significant stock price drop.
What does Smize for the camera mean?
"Smize For The Camera" Is a term from tyra banks, It Means Smiling For Your Eyes.
Which term describes a reduction?
manipulation
What does the geographical term sound mean?
it means a shallow body of water between the outer banks and mainland
What is the medical term of the reduction of organ?
hypoplasia
What does the term slump in trade mean?
A sudden dip in demand for the goods involved. A general slump means there is an overall reduction in trade.
What does the french term avante mean?
Principal TranslationsavantprepbeforeavantadjforwardAdditional Translationsavantadjfrontavantadjonwardavantadvprioravantnm(Sports) Sports, footballforwardavantnmfrontavantnmforefrontavantnmnauticalforeavantnmbowavantprepprevious toavantprepprior toavantprepereavantpreptimebeforeavantprepnot later thanby
What does the greater than sign mean in music?
An extended closed angle bracket ( > ) indicates a reduction in volume of a section of music. The Italian term diminuendo(alternatively, decrescendo) refers to a reduction in amplitude of a particular section or passage.
Attenuation is another term for?
reduction, inhibiting, cropping
What is the old term for the principal?
Headmistress or Headmaster
