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Typically, this is called "Principle and Interest" (or P&I). If the taxes and insurance is added to this, it is known as PITI. The actual amount depends on many factors, including the principle amount, the interest rate, and the length of the loan.
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How do loan processing companies make money?
Loan processing companies make money from interest. Interest is a specific percentage of the original amount taken from the loan processing company. When taking out a loan, the loan user takes a specific amount and is expected to later pay the same amount plus the interest they owe.
Is the amount of the loan plus the interest?
Typically, this is called "Principle and Interest" (or P&I). If the taxes and insurance is added to this, it is known as PITI. The actual amount depends on many factors, including the principle amount, the interest rate, and the length of the loan.
How do you calculate nominal interest rate?
Nominal interest, is the amount of interest on a loan or investment that does not take into account inflation; it's the amount of interest listed on the loan or bond.
What is the principal on a loan?
It is the base amount of the loan, but not including interest.
What is explicit interest?
Explicit interest is the amount of money that is paid on a loan. This means that it is a fixed amount of interest.
The amount of a loan is called the what?
The main loan amount is called the principle. The amount charged monthly for the loan is called interest.
What is charges made for using another money?
The charge for illegally using other people's money is embezzlement. It refers to the theft or misappropriation of funds placed in one's trust.
What is the name of a loan that is issued in return for the promise of being paid back the full amount plus the periodic interest?
This is called a bond.
If suing somebody can you collect interest on the money that they owe you?
The laws on collecting interest on a debt will vary by state and may be governed by the terms of the agreement, if any. However, most states do allow you to collect prejudgment interest and have it added to the judgment if the case goes to trial.
What are principal and interest on a loan?
The principal is the initial amount borrowed in a loan. Interest is the cost charged by the lender for borrowing that principal amount. The total repayment amount on a loan typically includes both the principal and the interest.
How much will payments be a month when you take out a 7000 dollar loan?
It depends on the term of the loan, the interest rate, and details of the loan contract that may vary widely. For example, the contract may call for payment only of the interest until the end of the term, at which time the loan amount ($7000) must be paid. Or the contract may call for monthly payments calculated to pay the interest plus a portion of the loan amount so that the loan will be paid in full at the end of the term.
What is the meaning of principle on a loan?
The base amount of the loan - not including interest That is the principal of the loan not the principle
