There is one key difference between loan originators and loan brokers (distributors). Originators lend their own money while brokers are the middlemen who put borrower and lender together.
Interest-only loans are loans where the borrower pays only the interest on the principal balance for a set term –typically five to ten years- at the beginning of the loan term.
Fixed rate loans are fully amortized loans characterized by a fixed interest rate and consistent monthly payment over the life of the loan.
A person’s debt to income ratio is the percentage of their monthly gross income that goes towards paying debts. It is an assessment of their income strength.
Credit Worthiness refers to a lenders appraisal of a borrower’s financial stability.