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2 years ago

How does a lender in the primary mortgage market earn money when a loan is originated?

1 answer:

4 0

Mortgage lenders can make money in a variety of ways, which includes origination fees, discount points, yield spread premiums, closing costs, loan servicing and mortgage-backed securities.

Yield spreads are the spreads which include the spread of the rate which any lender pays for money borrowed by them from larger banks and the rate which they charge from borrowers.

Closing costs are the fees which the lenders may take from th8e borrower include application, underwriting, processing, loan lock, and other fees.

Lenders always use their funds when they extend mortgages, they charge an origination fee of 0.5% to 1% of the loan value for extending this , which becomes due with mortgage payments.

To know more about the mortgage lenders here:

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The founder of the upscale shoe company Harry's Shoes Ltd. persuaded actors to wear prototypes of his company's shoes to the Osc

Zepler [3.9K]

Answer:

A. Opinion Leaders

Explanation:

Opinion leaders are individuals whose opinions and thoughts towards a product or service has a big influence on the position of others concerning where they stand about the product. They are influencers because they are able to influence people by their opinions. The leader is able to change and determine other people behavior according to their own preferences. In this case, the manager hopes that the actors wearing the prototype can have a positive impact by being opinion leaders and influencing other people to buy the product.

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3 years ago

Read 2 more answers

A company sells 15,000 units of its single product annually. Annual revenues are $450,000, variable costs are $315,000, and fixe

valentinak56 [21]

Answer:

Decrease in profit = $9,000

Explanation:

The impact on the profit would be the sum of the increase in contribution from the special order less the lost contribution by forgoing the standard order.

Accepting the special order of 3,000 units would mean losing standard contribution on 2,000 units from the current sales unit of 15,000. Remember the company only has excess capacity of 1, 000 units i.e (16000-15,000) So, the additional 2,000 units would need to be forgone at standard price.

Variable cost per unit = 315,000/15,000 = $21

Standard selling price = 450,000/15,000 = $30

Special order price = $24

Additional contribution from special order = (24-21) × 3,000 = 9,000

Lost contribution from forgoing standard order (30-21) × 2000 =(<u>18,000)</u>

Decrease in profit <u> (9,000)</u>

By accepting the special order, the company would lose $9,000 of its profit

7 0

3 years ago

Today you put $1000 in the bank. your bank pays 5% interest, continuously compounded. in 3 years, how much money will you have i

IRINA_888 [86]

With continuous interest,
$F=Pe^{rt}$
where
F=future value
P=principal = 1000
r=rate=5%
t=time=3 years

$F=Pe^{rt}$
$=1000e^{0.05*3}$
$=1000e^{0.15}$
$=1161.83$

Answer: The accumulated amount after three years is $1161.83

4 0

3 years ago

Write the name of tourism sector related occupation and clarify its importance with reference to Nepal.

kenny6666 [7]

Answer:

one among the main importance is the foreign exchange of currency since it has a very higher exchange value compared to other tourism spots. exports to other countries from Nepal are very cheap and several good are produced on a large scale. ... cheap way of lifestyle attracts a lot of tourists all over the world.

Explanation:

the top should explain as much as I think.

5 0

3 years ago

Dave Krug contributed $1,000 cash along with inventory and land to a new partnership. The inventory had a book value of $800 and

pav-90 [236]

Answer:

cash 1,000 debit

inventory 2,000 debit

land 5,000 debit

note payable 3,000 credit

Krug capital Account 5,000 credit

Explanation:

The land and inventories will be accepted at his market value.

Along with cash this are assets which enter the partnership so they are debited.

The note payable decreases the Krug capital contribution. It is credited.

Krug capital account balance will be to complete the entry and make debit = credit.

6 0

4 years ago