The calculus of financing is not at all hard. an organization, be it a bank or another types of loan provider, has use of funds at low priced prices. It lends those funds, and typically adds a pursuit margin.

The cost is covered by the margin of funds used to provide, the functional expenses of financing, plus the dangers related to it. Put another way, net gain = Interest Revenue – Interest Expenses – Net Non-Interest costs.

Now, think about a basic bell bend, and you will observe how FICO ratings may play a role in determining whom gets credit and would you perhaps perhaps maybe perhaps not. Read the rest of this entry »