What is a draw period in a loan?

Answer In a typical loan, the lender gives the borrower the entire amount up front. In a loan arrangement known as a line of credit (LOC), the lender sets a maximum amount that the borrower may receive, a... Read More »

Top Q&A For: What is a draw period in a loan

What is a grace period on a car loan?

On a car loan, a grace period is a time frame after the due date, during which you are not charged a late fee on your payment, reports After the grace period, your account is asse... Read More »

How to Fill Out the Loan Period for Student Loans?

College educations are expensive; tuition, fees and books cost more now than ever before, making it increasingly difficult for students to fund. Fortunately for students, grants, scholarships, fina... Read More »

Why Does Principle & Interest Vary Over the Period of a Mortgage Loan?

When you take out a mortgage, you are borrowing money from a lender. You must then make monthly payments to the lender. A portion of you monthly monthly mortgage payment goes toward paying off your... Read More »

Why does principal& interest vary over the period of a mortgage loan?

Principal and interest amounts vary during the course of a mortgage loan because a mortgage is front-loaded with interest, meaning the first installment payment includes the most interest, and the ... Read More »