What is a Junior / Second Mortgage: How it Works?
A junior or second mortgage is a loan taken out against a property that already has an existing mortgage. This type of mortgage is also …
What Is a Commitment Fee in Banking, and How Does It Work?
A commitment fee is a charge that banks and financial institutions impose on borrowers for committing to lend them a certain amount of money. This …
What exactly is a ‘Haircut’ in banking?
In the sophisticated world of finance, there exists a term that may sound more like a style statement than a banking strategy – the elusive …
What Are Tranches? Definition, Meaning, and Examples
Tranches are segments or slices of a pooled collection of financial instruments, such as loans or mortgages, that are structured to divide risk or investment …
