Buy down loans, Financial Management

Assignment Help:

The buy down loan is similar to the PAM; however, it is the seller of the property and not the buyer/borrower who places cash in a segregated account so that additional amounts required may be drawn and paid along with the mortgage payments made by the borrower. The pledged account is created by the seller out of his profits as in the absence of such pledged account, the borrower may not be eligible for any kind of loan. The amount that the seller pledges is a direct reduction of the sale proceeds for him and the borrower uses the seller's money without himself having to repay this amount to the seller. Though, theoretically this cost incurred by the seller may be inbuilt in the price by increasing it, the mortgage lender may not allow it. Buy down loans are arranged by sellers who are anxious to sell their property. 


Related Discussions:- Buy down loans

Criticism of walter’s model, (i) No External Financing: - Walter' model pre...

(i) No External Financing: - Walter' model presume that the firm's investment are financed exclusively by retained earnings and no external financing is used. If it was therefore t

Full valuation approach, When a manager measures the interest ...

When a manager measures the interest rate exposure, he would be interested in analyzing the exposure to a set of changing interest rate. The process of r

Describe the sales forecasting process, Describe the sales forecasting proc...

Describe the sales forecasting process. It is a group effort. Sales and marketing personnel generally offer assessments of demand and the competition. Production personnel genera

Interpretations of activity ratio''s, Activity Ratio's   RT:        ...

Activity Ratio's   RT:           The Receivables Turnover ratio is the ratio between sales to accounts receivables. This says exactly how fast a company can collect on the s

DIVIDEND DECISION, WHAT ARE THE IMPORTANCE OF DIVIDEND DECISION IN FINANACI...

WHAT ARE THE IMPORTANCE OF DIVIDEND DECISION IN FINANACIAL MANAGEMENT?

Day traders, Day Traders Day traders are basically the market markers. ...

Day Traders Day traders are basically the market markers. They create liquidity in the market by frequently buying and selling stocks throughout the day in the hope that the pr

Criticize the flexible exchange rate regime, Criticize the flexible exchang...

Criticize the flexible exchange rate regime from the viewpoint of the proponents of the fixed exchange rate regime. If exchange rates are fluctuating very frequently, that may

Convertible bonds, The issuer offers bonds with an option to the investor t...

The issuer offers bonds with an option to the investor to convert these bonds into equity shares at a pre-fixed ratio. These can be fully convertible bonds or partly co

Major proportion of the maximum financing requirement, Q. Major proportion ...

Q. Major proportion of the maximum financing requirement? Whether the credit terms themselves is able to be changed may depend upon the credit terms of competitors when set alo

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd