What exactly is LTV (loan to value)?
613631
I specialize in real estate.\n\nThe value is the value of the home as determined by a professional appraiser.  \n\nFrequently, however, banks usually have a rule that states they take the lesser of the appraisal or purchase price.  They do this for their own protection.\n\nSome mortgage companies (usually not banks) do not have the "lesser of" rule and will loan based on the appraisal.\n\nThis raises interesting strategic angles.  If you can use the appraisal, then frequently you can get 80-90% as your LTV, instead of 100% if you are forced to use the purchase price. If you can get 80% as your LTV, as someone mentioned, then you get rid of the PMI payments!  \n\nNote, even if you start with a 90% LTV, you'll be below 80% (not PMI!) much faster than if you're forced to use 100% as your starting LTV number.\n\nGood luck!  Email with any questions,\n\nJared
226458
This is a loan where you use the value of your home (equity) as collateral to borrow against, therefore home equity loan.
141356
here is a definition:\n\nAnother individual or entity can acquire the mortgage either with or without qualifying, depending upon the type of loan. Most assumable loans now require the new buyer to qualify. Assumable loans include FHA, VA and owner-financed notes.\n\nHere is why you have heard good things about assumable loans:\n\nYou can get rich with these, cause you can do what is called a wrap around mortgage. That is you buy a house for one price and one down payment, and sell it for another price 5% higher and another down payment 5% higher and you have money coming in with no risk. \n\nMost new loans require the new buyer to qualify, so the days of getting rich easy are gone.
297219
There are many forms of interest in a property.  Common form is Fee Simple which basically means you own all of it and its belongings.\n\nLeasehold interest means that the land that your condo sits on is on a land lease.  Land lease generally runs for 100 years.  However, the important thing to remember is that you DO NOT own the land.\n\nThe messed up part is that whoever owns the land might not renew the lease either.\n\nUsually, the lenders will not even lend on a property if there is only 14 years left.  If you think about it, the loan is generally for 30 years, but you might not have the property after 14 years.\n\nYou should try to steer clear of this especially with such a short amount of time left.
398740
LTM = Last Twelve Months\n\nEBITDA = Earnings Before Interest, Taxes, Depreciation and Amortization
332971
a VERY SIMPLE example ...\n\nif you bought a t-note that was yielding 1% it means you would get $1/yr for each $100 of the note\n\nif interest rates went up to 2% someone would demand a return of $2 for each $100 of the note \n\nif you wanted to sell your note you would get $100 for every $2 worth of yield you handed over (you would have to hand over $200 face value of your 1% bills for only $100 in order for the buyer to get a yield of $2 for their $100 investment)
205126
Yes, all loans are like that.  \n\nBut your question is quite vague.  What exactly are you looking for?\n\nAbout the longest term you will be able to get for a loan is 60 months, and this will depend on the purpose of the loan (such as car loans).  \n\nSo the question is, when you state you want to pay it off "a little at a time", what sort of payment are you thinking about?\n\nLets take this example.  A $5000 loan over 60 months and 5% interest rate will cost you $96.66 a month.  But lets say you can only afford a $20 payment.  How much can you borrow now?  $1000.  Does that fit your needs?\n\nCheck out the link below.  It contains a bank loan calculater.
451079
Although legal, it is a bit of a scam.  It basically directs you to finance your life by leveraging core assets such as your home, your cash value life insurance and borrowing against your 401(k) savings.  All of these feature interest generating loan that is paid by you, but the interest goes back into the asset value.\n\nIt is a dangerous approach to investing by over-leveraging hard-earned assets.
1168169
Goose is right. The formula is:\n\nFV = P x e^(r x y) \n\nwhere FV = Future Value; P is your principal, r is the annual interest rate and y is the number of years of continuous compounding and e = lim(n-->inf) of (1+1/n)^n\n= 2.7182818.(about)\nHere's link which explains it quite well and also has a periodic/continuous calculator to fool around with.\n\nhttp://www.moneychimp.com/articles/finworks/continuous_compounding.htm
643988
Coupon rate of intrest is the amount of intrest that the bond paid at the time that it was first released (face value), equation is, (Payment amount-face value)/face value, where payment amount is the amount you are paid when the bond matures (face value+interest)\nMarket rate of interest is the percent gain between current purchase price and the future realized value, the equation is (Payment amount-Market Value)/Market Value
350295
To figure the payment on an installment loan, use the PMT() function in Excel, if you have that. If not, the formula can be derived from the present value formula and the perpetuity formula. The present value of a future cash flow is the future cash flow divided by (1 + Rate/frequency)^(years x frequency). The present value of perpetuity (the same amount paid every period) is amount per period/(Rate/frequency). Thus a 7 year installment loan with monthly payments (frequency = 12 payments per year) and an 8% interest rate can be valued as the difference between a perpetuity starting now and a perpetuity starting in 7 years. Thus:\n\n600,000 = (Payment/(8%/12))x(1 - 1/((1+(8%/12))^(7 x 12))\nThe interest per month at 8% would be 4,000, not the 3,946 you calculate, so I am unaware of the particular detail of why that is different. The formula above results in a monthly payment of about 9,352. If you want to check it the long way, deduct the interest from the payment, and that is the reduction of principal that period, so you can recalculate the interest for the next period and see how much more the principal declines. If you carry this out to the maturity, the balance should be zero.
1101360
I assume you are referring to "carrying value."  Carrying value is a term used for depreciable fixed assets, such as buildings and equipment.  The carrying value is the undepreciated amount of the asset.  If you spend 10,000 on a piece of equipment and have depreciated (expensed) 2,000; the carrying value is 8,000.  \n\nIf you were to then sell that item for 8,500; you would have a gain of 500.
1169169
It means you give the company the money(or collatoral) that you want to have credit for. Then you pay for the interest and fees for having the credit. It is better to go to a loan shark. At least they only break bones and not a credit history!
744468
Gearing limit refers to the maximum amount of leverage a company (or fund) can use.  Usually this is expressed as a percentage of total assets.  So, for example, a "gearing limit of 35%" would mean that a fund cannot borrow more than 35% of its assets value to fund the purchase of those assets.  In real estate, this is also called "the Loan to Value (LTV)" percentage, but in a fund it usually refers to the maximum allowable LTV imposed on any property the fund can own.  The NAV is the "Net Asset Value" which is the total value of assets less liabilities that divided by the number of shares the fund has issued at some point in time.  In the case of an open-end fund, it is the price for which shares can be bought or sold at the time the NAV is measured.  The MSCI world index is an index of large global stocks, kind of like the S&P 500 is for America.  It measures the value of a broad basket of global stocks and is used as a benchmark against which the performance of and individual mutual fund or stock is measured.  The period return on this index is considered a proxy for the return on all global stocks as an asset class.
607557
assets = liabilities + owner's equity\n\nA = L + E
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12%\n\nThe rate paid on the loan is 12% (assuming simple interest rather than compounding). The compensating balance is just cash kept as a deposit, which the company gets back.  This doesn't affect the interest on the loan - just opportunity cost.
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Investopedia is a decent web site.\nwww.investopedia.com\n\nCurrent ratio (current assets/current liabilities) is a ratio that basically shows whether a company has enough liquid capital to pay what they owe in the next 12 months.  A current ratio of less than 1.0 is generally seen as a red flag indicating that the company will need to raise more capital to pay for their liabilities in the short term. It is a shortcut ratio rather than the definite cause-effect ratio. \n\nWorking capital is not a ratio, but a balance.  Working capital definitions vary, but it is generally cash, inventory, accounts receivable less accounts payable and accrued payables. Basically, this is the capital needed to keep the business running.  If you are a service (e.g. consulting), you generally need very little working capital, but inventory-based businesses need capital to stock the shelves and finance that gap between paying your suppliers and getting paid from your distributors. \n\nAsset turnover is Revenues/Avg. Assets.  This is a "capital velocity" ratio that shows how much money you bring in on the revenue side compared to how much capital you have put to work.  It is a somewhat meaningless ratio by itself, but becomes much more relevant when combined with "return on sales".\n\n"Return on sales" is not a common term.  It is usually called "net profit margin".  This is net profit/revenues and shows how much money equity shareholders earn on every dollar brought in on revenues after paying off all expenses.  When combined with Asset Turnover ratio, it gives you return on assets [(Return on sales) x (Asset Turnover) = Return on Assets].  This shows you how much money you are making on the capital invested.  For example, if you are getting 5% Return on Assets, you might be disappointed as bond holders might expect 5-8% returns while equity holders usually want 11-20%, depending on the risk of the business.  In other words, if a business does not return the cost of capital, it is probably a bad business.