Sentence examples for interest reserves from inspiring English sources

Some home builders are rapidly drawing down so-called interest reserves, the extra cash cushion built into a loan that is intended to protect banks by ensuring that borrowers can pay back interest.

Stephen Kotler, a director of rentals for Prudential Douglas Elliman, said that many developers of stalled projects had avoided foreclosure only because they had been able to keep current on their construction loans by spending "interest reserves" negotiated as part of their initial loan packages.

Interest reserves were designed for the benefit of the customer.

Interest reserves are added to your loan amount to make the monthly payment on your loan.

The budget is created from your costs and includes every cost within the loan including land balances, closing costs, interest reserves, contingency and bank fees.

What you're not told is that all construction loans have this option and it's called "interest reserves" and the payments are added to the loan amount.

"The interest reserve is dwindling, and now the property faces the prospect of taking a hit on its income".

Does the bank require a contingency and an interest reserve account?

The payments are made from this interest reserve account and no, it's not free.

Factor interest reserve and contingency funds into the cost of building your new home.

So, banks created the interest reserve account by adding up the estimated interest payments over a 12 month period and add this to the loan amount.