Definition
Loss Payable Clause
A loss payable clause is a provision stipulated in an insurance contract that protects a lender from losses incurred should a collateral used in a secured loan …
Payment Rate
The payment rate refers to the actual interest rate which is used to calculate an actual mortgage payment. There has to be a distinction made with payment rate …
Default Interest
The default interest refers to the interest rate charged on the amount overdue on obligated payment amounts. For example, if a home loan has a $1,000 monthly …
Floor Rate
A floor rate in a figure expressed in percentage that indicates the minimum interest that is to be charged on a home loan. It can also be referred to as the …
Negative Equity
A status of negative equity on a home loan arises when the mortgage balance is more than the value of the property. This can be a frightening realization to …
Nominal Interest Rate
The nominal interest rate is the most basic method of calculating interest charges that most people implicitly understand. For example a $100,000 loan at a …
Par Rate
A mortgage par rate is the interest rate tagged to a home loan in which any addition or subtraction is not applied, which is why it is also often referred to …
Loan Repayment Account
A loan repayment account refers to an account that has be specially opened by a lender which a borrower has to make monthly payments to, and in turn the funds …
Payment Shock
Payment shock refers to the sudden large increase in mortgage payment that is so drastic that borrowers kpkb. Because the majority of home loans in Singapore …
Deviated Rates
Deviated rates refer to interest rates on loan products such as mortgages that are lower than what are publicly published and advertised to general consumers. …
