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What is Name of money given to a borrower of low income and assets?
subprime loan
Are home equity loans secured by borrowers assets?
Yes, given that the "borrower's assets" in this case are the equity the borrower has built up in their home. In a home equity loan, you are borrowing your own money, in effect. And if you don't pay it back to yourself, it comes out of the value of your home when you sell it.
Are assets considered income for tax purposes?
Assets are not considered income for tax purposes. Income is typically money earned from sources like wages, salaries, and investments, while assets are possessions or resources owned by an individual or entity. Taxes are usually based on income rather than assets.
What ability of a borrower to repay money is known as?
The ability of a borrower to repay money is known as "creditworthiness." This assessment considers various factors, including the borrower's credit history, income level, debt-to-income ratio, and overall financial stability. Lenders use creditworthiness to evaluate the risk of lending money and to determine loan terms such as interest rates and repayment schedules.
What assets can you have and still get Section 8 housing?
Right now there is no limit on assets. However, if you have money saved in the bank, 2% of the total money you have (total liquid assets) will be counted as income.
What is the name given to someone who borrows money?
The lender loans money to the borrower.The borrower takes the loan out with the lender.The borrower is then in debt (owes money) to the lender and the lender is in credit with the borrower and will want the borrower to pay him/her back.
Why do lenders use gross income when determining loan eligibility?
Lenders use gross income when determining loan eligibility because it provides a clear and consistent measure of a borrower's overall financial capacity to repay the loan. Gross income reflects the total amount of money a borrower earns before deductions, giving lenders a more accurate picture of the borrower's ability to meet their financial obligations.
What is the difference between assets and liabilities according to Robert Kiyosaki?
According to Robert Kiyosaki, assets are things that put money in your pocket, while liabilities are things that take money out of your pocket. In other words, assets generate income for you, while liabilities require you to spend money on them.
What is the difference between assets and income and how do they impact financial stability?
Assets are items of value that a person or organization owns, such as cash, property, or investments. Income is the money that a person or organization earns, usually through wages, investments, or business activities. Assets contribute to financial stability by providing a cushion of value that can be used in times of need or to generate income. Income, on the other hand, is the flow of money that can be used to cover expenses and build wealth. Both assets and income are important for financial stability, as they provide resources to meet financial goals and withstand unexpected expenses.
The numerator of the rate earned on total assets ratio is equal to?
The numerator of the rate earned on total assets ratio is equal to income before interest. Income, broadly defined, is money received, particularly on a regular basis.
How can one acquire assets without money?
One can acquire assets without money by using skills, knowledge, and resources to create value that can be exchanged for assets. This can include bartering, trading services, leveraging relationships, or utilizing creativity and innovation to generate income and acquire assets over time.
Is income considered an asset?
Income is not considered an asset because it represents money earned over a period of time, while assets are possessions or resources that have value and can be used to generate income.
