Credit & Lending

A:

A mortgage is a legally binding contract, so it is not possible to remove a name from the loan documents until the mortgage has been paid in full. According to the San Francisco Gate Home Guides, the mortgage loan can be refinanced in the name of the person who wishes to keep ownership of the home, or the property can be sold to settle the debt.

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  • How does revolving credit work?

    Q: How does revolving credit work?

    A: Revolving credit is a line of credit where a borrower is not bound by a set number of payments to pay back the loan, but is instead free to use the funds whenever they are needed. For individuals, an example of revolving credit would be a credit card, where monthly payments are paid based on the amount of funds that have been used. For businesses, revolving credit is often used to cover fluctuating operational expenses.
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  • What is "do it yourself credit repair"?

    Q: What is "do it yourself credit repair"?

    A: According to the Federal Trade Commission, most credit repair businesses are scams, and as such they advocate consumers take a "do-it-yourself" approach to credit repair by working with creditors to remove inaccurate information, and by setting up and sticking to a payment schedule to pay off debts that are legitimately owed. There are no easy fixes when it comes to repairing credit, and in particular, only time can remove accurate negative reports, but taking a personal, and active roll in the repair process will save consumers money and reduce frustrations in the long run.
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  • How do you check your credit score?

    Q: How do you check your credit score?

    A: Because lenders assess your credit score to determine how much of a financial risk you are, it is vital to stay on top of your credit score and check your credit reports yearly. You simply need a computer with Internet access and a credit card to check your score. Websites such as Annual Credit Report allow you to review your credit report and purchase your credit score.
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  • How do you calculate TTL for a car in Texas?

    Q: How do you calculate TTL for a car in Texas?

    A: Several online sales tax and fees calculators are available that help you estimate how much you pay when purchasing a new car. State-specific sales tax calculators allow you to determine the estimated TTL for a car in Texas.
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  • How long before a check becomes void?

    Q: How long before a check becomes void?

    A: According to RealSimple, banks are not required to honor personal checks that are more than six months old. Checks older than six months are considered "stale dated," and it is up to the bank whether or not to honor them.
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  • What are the advantages of a bank loan?

    Q: What are the advantages of a bank loan?

    A: According to Chron, the major advantages of a bank loan are stability and autonomy if the borrower is a small business. This source explains that banks lend money without taking ownership in the enterprise for which the loan is being used, so the borrower retains total autonomy as long as the money is paid back in time.
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  • What is a GMAC auto loan?

    Q: What is a GMAC auto loan?

    A: A GMAC auto loan is a consumer debt instrument that is issued to help finance the purchase of an automobile. Wikipedia explains that In 2010, GMAC changed its name to Ally Financial, but it continued to offer vehicle financing to qualified customers.
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  • How much debt does the average American have?

    Q: How much debt does the average American have?

    A: On average, Americans have more than $15,000 in debt, and that is just credit cards according to Debt.org. That doesn't include mortgages or car loans, which significantly increase that number.
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  • What are prox terms?

    Q: What are prox terms?

    A: Prox is short for the Latin term "proximo mense" and means in the next month. Prox terms is an invoicing agreement that requires the receiver of a good or service to reimburse a business within a month.
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  • What happens if my house is repossessed?

    Q: What happens if my house is repossessed?

    A: If a house is repossessed by the mortgage company, it is usually sold through an auction or a real estate agent. Depending on both the mortgage company and the state, the former owner may have the opportunity to redeem the property. If the home sells for less value than the outstanding mortgage, the former owner may be sued by the lender for the difference or have the debt forgiven.
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  • What percentage of parents pay for college?

    Q: What percentage of parents pay for college?

    A: The percentage of parents who pay at least a portion of their children's college costs is between 22 and 35 percent. The rate varies depending on the components of cost and payment figured into the calculation.
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  • What is a promissory note?

    Q: What is a promissory note?

    A: A promissory note is a written financial record of the details surrounding a loan between two parties. It encompasses every aspect of the financial agreement and serves as documentation and proof of the transaction.
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  • How should you write a commitment letter?

    Q: How should you write a commitment letter?

    A: A commitment letter is written in a clear, concise and diplomatic tone. All essential information must be reviewed prior to writing. The letter outlines all previously agreed terms between the parties involved.
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  • Where can I get help for finding free grants at no cost to me?

    Q: Where can I get help for finding free grants at no cost to me?

    A: According to USA.gov, grants that come at no cost to the applicant can be applied for and potentially received from the federal government, from states and from local communities. The federal government typically provides funds to local agencies that then distribute the grants for particular purposes.
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  • Can I buy a money order with a credit card?

    Q: Can I buy a money order with a credit card?

    A: As a general rule, a money order cannot be purchased with a credit card, according to Fox Business News.
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  • What is the definition of annual premium?

    Q: What is the definition of annual premium?

    A: An annual premium is defined as the amount that someone is required to pay each year in order to keep his or her insurance policy active. If the insured person does not pay the premium amount by the policy's specified due date, the policy is cancelled. Some insurance companies offer a grace period after the due date, and if the premium is paid in this time frame, the policy is reinstated.
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  • What are the factors that go into your credit score calculation?

    Q: What are the factors that go into your credit score calculation?

    A: The factors that go into calculating a FICO credit score, the system used by most banks and other businesses that deal in credit, include payment history, amount of debt, length of credit history, types of credit and amount of inquiries. Special circumstances such as bankruptcy or a limited credit history also impact credit scores.
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  • What is the highest credit score you can get?

    Q: What is the highest credit score you can get?

    A: As of 2014, a perfect score on the FICO credit scoring model is 850. However, a perfect score is rare. A 2013 Bankrate article pointed out that a long-time mortgage banker had never seen a FICO score higher than 834.
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  • What is a mortgage?

    Q: What is a mortgage?

    A: A mortgage is essentially a loan, usually given by a bank, to provide individuals and families with funding to secure housing. Mortgages fall into the larger category of financial loans, but are specifically designed for real estate. Mortgages contain several different components, which include collateral, principal, taxes and insurance.
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  • What is a renter credit check?

    Q: What is a renter credit check?

    A: A renter credit check is when a landlord checks a person's credit report and score to determine if he should rent a property to the potential tenant. A renter credit check is often the only way a landlord can sort reliable tenants from unreliable tenants.
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  • How long does a creditor have to collect a debt?

    Q: How long does a creditor have to collect a debt?

    A: The average statute of limitations, or the number of years a debtor has to seek payment or sue, is three to six years, according to the Federal Trade Commission. The exact time frame varies by state and the type of debt under collection.
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