apr vs interest rate

Mortgage Rates: Annual Percentage Rate Vs. Interest Rate

The Annual Percentage Rate (APR) and the interest rate are key components of mortgage loan acquisition. These two metrics influence monthly payments and the overall cost of borrowing. Simply put, if you are looking to get a loan for property investment, these two formulas will enable you to borrow money wisely. While both the interest …

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debt yield ratio is important for your mortgage loan

Debt Yield vs DSCR

As the lending market has evolved, lenders have adopted various metrics to assess risk and determine loan provisions. This includes debt yield ratios which are used in combination with Loan-to-Value Ratios (LTV) and Debt Service Coverage Ratios (DSCR). Rather than relying on property values or amortization schedules alone when evaluating operations, this metric allows for …

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DSCR Loan Pros and Cons

Unlike traditional loans, debt service coverage ratio (DSCR) loans are designed for borrowers who want to avoid the income verification standards, slower approvals, and underwriting complexities of conventional mortgages. The DSCR loan pros and cons vary depending on the borrower’s goals, financial situation, and property investment. Before You Apply for DSCR Loans If you’re considering …

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Your Guide to Comparing FHA vs Conventional Loan Mortgages

FHA vs Conventional Loan Mortgages

FHA loans and conventional mortgages are common mortgages used to finance homes. Whereas Federal Housing Administration (FHA) mortgage loans are insured by the government, conventional loans come solely from private lenders such as credit unions, banks, and mortgage brokerages. FHA loans have lower qualifying standards and lower down payment criteria than conventional loans. Conventional mortgages, …

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The Difference Between a Fixed-Rate And Variable-Rate Mortgage

Variable-Rate VS Fixed-Rate Mortgage

Fixed-rate and variable-rate mortgages are two types of mortgage loans that homeowners use to finance their homes over years. The basic difference between variable rates vs fixed rates is the interest rate. Fixed-rate mortgages have a fixed interest rate that does not fluctuate, no matter the market conditions. Meanwhile, variable-rate mortgages have variable interest rates …

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