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  2. Debt-service coverage ratio: What is it and how do you ... - AOL

    www.aol.com/finance/debt-coverage-ratio...

    According to the CFI, most lenders will expect to see a DSCR of at least 1.25, but ideally, closer to 2. A better DSCR — especially paired with other indicators of financial health, ...

  3. Debt service coverage ratio - Wikipedia

    en.wikipedia.org/wiki/Debt_service_coverage_ratio

    The debt service coverage ratio (DSCR), also known as "debt coverage ratio" (DCR), is a financial metric used to assess an entity's ability to generate enough cash to cover its debt service obligations, such as interest, principal, and lease payments. The DSCR is calculated by dividing the operating income by the total amount of debt service due.

  4. Hard money lending: Guide to hard money loans and lenders - AOL

    www.aol.com/finance/hard-money-lending-guide...

    Similar to payday lenders: Like payday lenders offering personal loans, hard money lenders have little oversight or regulation to adhere to, says Bruce Ailion, a real estate attorney and Realtor ...

  5. No-closing-cost refinance: What it is and how it works - AOL

    www.aol.com/finance/no-closing-cost-refinance...

    Credit check fee: Your credit score and profile are a key part of the lender’s review of your application. Often, lenders pass on the cost associated with pulling your credit report to you.

  6. Subprime lending - Wikipedia

    en.wikipedia.org/wiki/Subprime_lending

    This is even more apparent when the lifetime cost of the loan is considered (though most people will want to refinance their loans periodically). The total cost of the above loan at 5.5% is approximately $1,018,891.24 , while the higher rate of 9.5% would incur a lifetime cost of approximately $1,366,390.93 .

  7. Mortgage underwriting in the United States - Wikipedia

    en.wikipedia.org/wiki/Mortgage_underwriting_in...

    Credit is what the underwriter uses to review how well a borrower manages his or her current and prior debts. Usually documented by a credit report from each of the three credit bureaus, Equifax, Transunion and Experian, the credit report provides information such as credit scores, the borrower's current and past information about credit cards, loans, collections, repossession and foreclosures ...

  8. No-closing-cost mortgage: How it works and how to decide if ...

    www.aol.com/finance/no-closing-cost-mortgage...

    You get two quotes for 30-year loans, a traditional mortgage at 7 percent interest and a no-closing-cost loan at 7.5 percent. Let’s say closing costs on the traditional mortgage come to 3 ...

  9. Credit risk - Wikipedia

    en.wikipedia.org/wiki/Credit_risk

    Credit risk is the possibility of losing a lender holds due to a risk of default on a debt that may arise from a borrower failing to make required payments. [1] In the first resort, the risk is that of the lender and includes lost principal and interest, disruption to cash flows, and increased collection costs. The loss may be complete or partial.

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