Predatory Lending: abusive credit practices that come with an interest rate so you’re able to a person who doesn’t have the ability to repay. Additionally relates to frequent refinancing of a loan billing highest focus and you will charge whenever.
Predictive Variables: The brand new parameters that will be an element of the algorithm comprising areas of a card-rating model. This type of details are acclimatized to predict a great borrower’s upcoming credit abilities.
Prominent Inventory: stock which will take top priority over common inventory pertaining to returns and you will liquidation rights. Prominent stockholders normally have no voting legal rights.
Pre-foreclosures Revenue: a process the spot where the debtor is actually permitted to sell an effective property to have an expense less than what is owed on it to prevent a foreclosures. This business completely satisfies the fresh new borrower’s loans.
Prepayment: any number reduced to attenuate the principal equilibrium away from that loan before due date or percentage entirely off home financing. For the each circumstances, full fee takes place up until the loan might have been fully amortized.
Prepayment Penalty: a provision in a few finance that cost you so you can a good debtor whom takes care of financing before it is owed.
Pre-Qualify: a lender informally determines the maximum amount an individual is eligible to obtain. This isn’t a guarantee off financing.
Pre-Approval: a lender commits to help you give so you can a possible borrower a fixed loan amount considering a done application for the loan, credit reports, obligations, offers possesses been reviewed of the an enthusiastic underwriter
Prepayment Penalty: a charge energized in order to a homeowner who pays a minumum of one monthly payments through to the due date.
