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Regarding a HAMP (Home Affordable Mortgage Plan) modification, in order for your new PITA payment to be under the 31% guidelines at 2%, sometimes a portion of the balance owed is deferred to the end of the loan term. By reducing the amount of the balance you're paying as well as its interest, your payment will be under 31% of your income. The deferred amount must be payed later, you still owe it; however it accrues no interest! So a deferred principal balance is the interest FREE portion of your original loan balance. It's just pushed back to a lump sum at the end of the term.
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Are all temporary differences that exist at balance date recognised as deferred tax assets or deferred tax liabilities?
yes - either a deferred tax asset (DTA) or a deferred tax liability (DTL).
What is deferred principal balance on a mortgage?
A deferred balance is one possible method for a borrower to modify a loan. This normally would be done if the borrower is struggling with repayments, but there is a strong prospect that the borrower's financial situation will improve in the long term. Lenders typically will not insist that a borrower already be behind on payments before agreeing to such a modification. The other part of the balance effectively becomes an interest-free loan to be paid off as a lump sum at the end of the mortgage term. The effect is that the person's monthly repayments will be lower because the amount of the principal subject to monthly payments has been reduced. Whether he winds up paying more or less overall depends on whether the loan repayment period is extended for so long that even with a reduced balance subject to interest, the total interest charged increases. A borrower who gets a deferred balance should make plans to have the cash on hand to pay off this balance when the loan period ends.
Why would one need a deferred tax liability?
Deferred tax liability is necessary when a company's balance sheets fail to reflect what they are claiming on their tax returns. This can occur, for example, in cases of deferred payments from customers.
Where to put deferred tax assets in the balance sheet?
Defferred tax asset is shown in assets side of balance sheet under head of other assets.
What is the opposite of principal?
If Principal refers to the position at a school, the opposite would be Student. If it is in refference to a corporate position, the opposite would be a low ranking employee or a customer. If it is in refference to a Principal Sum or Balance, the opposite would be the closing sum or balance. It highly depends on the context of the word Principal
The action of adding accrued interest to the principal balance is called?
capitalization. Capitalization is when all unpaid interest is added to the principal balance of your loan. Capitalization increases your total amount to be repaid because you will then have to pay interest on the increased principal amount.
What is a maturity mortgage?
Date on which the principal balance of a loan is due.
Principal accounts on a bank's balance sheet?
Loan account is the most important account in the bank's Balance sheet.
What is the outstanding balance on a loan called?
The amount of the loan is called the principal.
What does La Chateliers principal state?
A reaction at equilibrium will respond to balance a change
What is the principal balance if the principal plus interest at the end of 1 and a half years is 3360 at an annual interest rate of 8 percent?
3000
When you pay more than the minimum payment on a credit card how do you know it's going to the principal balance?
It is actually quite simple. Any amount that you pay that exceeds the finance charges and any fees included within that minimum payment goes toward the principal. In addition, 100% of the overpayment goes toward the principal balance. In other words, if you make just the minimum payment, a few bucks might go toward the principal balance. If you pay $20 above the minimum payment, all of that $20 plus a few bucks from the minimum payment go toward the principal balance. All of the overpayment goes toward principal. You can also look at the minimum payment calculation to determine how much of the minimum payment goes toward principal.
