Mortgages & Loans
The most frequently asked tax questions related to Mortgages & Loans
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Answer Tax QuestionsWho is included in the Federal Reserve System ?
Asked Friday, January 12, 2001 by an anonymous user
The Federal Reserve System is the monetary authority of the United States. It was established in 1913, and governed by the Federal Reserve Board which is located in Washington, D.C. The system includes twelve Federal Reserve Banks and is authorized to regulate monetary policy in the United States as well as to supervise Federal Reserve member banks, bank holding companies, international operations of United States banks, and United States operations of foreign banks.
Mortgage - After acquired clause
Asked Thursday, January 11, 2001 by an anonymous user
A "After acquired clause" is a contractual clause in a mortgage agreement stating that any additional mortgage able property attained by the borrower after the mortgage is signed will be regarded as additional security for the obligation addressed in the mortgage.
What is a Bank collection float ?
Asked Thursday, January 11, 2001 by an anonymous user
Bank collection float is the time that passes between when a check is deposited into a bank account and when the funds are available to the depositor, during which period the bank is collecting payment from the payer's bank.
What is interim financing ?
Asked Wednesday, December 27, 2000 by an anonymous user
Interim financing is short-term financing obtained for business purposes only until another source of long-term funding comes in. An example is a short-term construction loan to build a warehouse. When the building is complete, a long-term commercial mortgage is used to pay off the construction loan. The mortgage, similar to a home mortgage, is paid back over a number of years.
Can I get a business loan if my business is service based with little business collateral ?
Asked Wednesday, December 27, 2000 by an anonymous user
Generally, it is not the type of business that matters, but the credit worthiness of the guarantors, the financial performance of the business and the collateral pledged. The real issue is that often service based businesses have very few hard assets such as inventory, equipment or accounts receivable to pledge as collateral, but banks and the Small Business administration require some form of collateral. Business owners often pledge personal assets to obtain a loan.
What is an impound account ?
Asked Wednesday, December 27, 2000 by an anonymous user
An impound account is also known as an escrow account and is required by lenders in most states, particularly when the amount you are borrowing represents a large percentage of the property's market value. When an escrow or impound account is required, you can often waive the use of an impound account for the hazard homeowner's insurance and property taxes for a fee. You will always have to prepay your mortgage insurance payments (if any) into an impound account.
What is hazard insurance ?
Asked Wednesday, December 27, 2000 by an anonymous user
Hazard insurance protects homeowners against property damage caused by natural disasters such as a fire or severe storm. If your property is damaged during a catastrophe, hazard insurance should cover the costs to rebuild your home. Banks and lenders require that you get a hazard insurance policy before you buy or refinance a home. Generally, you have to pay for the first year of hazard insurance on the closing date.
Is my personal credit history considered for a business loan ?
Asked Wednesday, December 27, 2000 by an anonymous user
Your personal credit history is considered for a business loan because it gives the lender or bank a history of your personal money management, demonstrates repayment of debts and it lets the lender know of existing debts including delinquencies, bankruptcies, references, liens, student loans, etc. It is also important because if your business is a sole proprietorship or individual, there in no difference in credit history for loan purposes. Generally, if you business is a corporation, LLC, partnership, trade company, etc., then the bank or lender looks at the business history.
What is a Jumbo Loan ?
Asked Friday, December 01, 2000 by an anonymous user
A loan that exceeds the conventional loan limit or does not conform to the guidelines established by Freddie Mac or Fannie Mae is called a Jumbo loan. Generally, these loan amounts can go up to three million dollars. Loan to value limits for Jumbo loans range from 60 percent to 95 percent, depending on the loan amount.