What is a loan? A loan is money that you borrow from someone for a specific purpose or an unforeseen event with a promise to pay back. When you borrow the money, you incur a debt and have to pay the money back to the lender over time, and a little extra money – called …
When we discussed student loans, you mentioned federal and private student loans. But what is a Federal Student Loan? Federal student loans are funded by the federal government. They have a fixed rate of interest, and their terms and conditions are set by law. Students with a financial need may even qualify for a subsidized …
Read MoreComparison: Federal Student Loans vs Private Student Loans
What is a Student Loan? A student loan is a loan that you can take to pay for your college education. With the cost of college education skyrocketing, student loans help people pursue their higher education dreams even if they cannot save enough to foot the entire bill. A student loan can be used for …
Read MoreWhat is a Student Loan?
What is Foreclosure? Foreclosure is a legal process where your home is put up for sale by the lender. It happens when your home is used as a collateral for a mortgage, but you default and aren’t able to pay back. Then the lender can foreclose your home to recoup the remaining loan amount with …
Read MoreWhat is Foreclosure and How Can You Prevent It?
Howdy Wall St. Willy! I saw someone using a credit card at the mall. But what is a credit card anyway? Well, a credit card is a plastic card that you use to pay at stores and online. But where does that money that you use to pay come from? Well, a bank lends it …
Read MoreWhat is a Credit Card?
My friend told me that his credit card is better than my debit card. But is that true? Is there even a difference? Yes, there are a couple of differences. Well then, what are they? First of all, for credit cards, you borrow the money from the bank. But with debit cards, you use …
Read MoreComparison: Credit Cards vs Debit Cards
As we’ve discussed earlier, both Conventional Mortgages and FHA Loans help us buy a home through a loan. We make a down payment, and repay the loan principal, interest, etc through monthly payments. But what are the differences between them? The main difference is in terms of credit score and minimum down payment requirements. …
Read MoreComparison: FHA Loan vs Conventional Mortgage
We have talked about home equity loan and home equity Line of Credit or HELOC in the past. But can you please quickly summarize these for me? Both home equity loan and home equity Line of Credit let you borrow against your home equity. Both could give you access to a large amount of …
Read MoreComparison: Home Equity Loan vs Home Equity Line of Credit HELOC
What is a Home Equity Loan? It is a loan where you borrow money using your home equity as collateral. It is also known as a second mortgage. How does a Home Equity Loan work? A home equity loan is like a regular loan, where you get all the loan money upfront. You repay …
Read MoreWhat is a Home Equity Loan or a Second Mortgage?
What is Home Equity Line of Credit? A home equity line of credit or HELOC is a revolving line of credit, based on the equity you have built in your home. How does Home Equity Line of Credit work? It is very similar to a credit card borrowing limit – the lender fixes the …
Read MoreWhat is Home Equity Line of Credit or HELOC?
