Secured vs. Unsecured Loans: What Your Collateral Buys You — and What It Risks
Secured loans cost roughly half as much as unsecured ones — but the lender can seize your collateral and sue for any shortfall.
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Borrowing
Smart borrowing strategies and debt management
APR vs. APY Explained: What Borrowing Costs vs. What Savings Earn, and Why Compounding Is the Whole Difference
APR prices borrowing without compounding; APY pays savings with it — compare APR to APR, APY to APY, and run the conversion before close calls.
Balloon Payments, Explained: How Partially Amortized Loans End in a Lump Sum
A balloon loan amortizes over 30 years but matures in 5 to 7, leaving most principal due at once — refinance early or fund the lump sum deliberately.
Home Equity Loan vs. HELOC: Lump Sum or Revolving Line — and Why Both Put Your House on the Line
Lump sum at a fixed rate versus draws as needed at a variable rate — and the IRS allows the interest deduction only when the money improves your home.
PITI, Explained: The Four Parts of Your Mortgage Payment and the 28/36 Rule That Decides How Much House You Can Afford
PITI — principal, interest, taxes, insurance — is your real monthly mortgage payment, and the 28/36 rule caps housing at 28% of gross income.
RESPA, Explained for Homebuyers: What Your Loan Estimate and Closing Disclosure Must Show, the Kickback Bans That Keep Closing Costs Honest, and the Escrow Cap That Limits Your Servicer
RESPA locks lender fees to the Loan Estimate quote, bans referral kickbacks, and caps escrow cushions at two months — know the buckets before you sign.
APR vs. APY: Why Your Loan Rate Ignores Compounding While Your Savings Yield Includes It — and How to Compare Either One Correctly
APR spreads borrowing costs over a year without compounding; APY folds compounding into savings growth — compare APR to APR and APY to APY.
ASC 470 Debt Modifications vs. Extinguishments: How to Book a Refinance, Rate Change, or Loan Extension
Under U.S. GAAP, a same-lender refinance is an extinguishment when cash flows differ by 10% or more — otherwise it is a modification with a new rate.
Debt-to-Asset Ratio: How Much of Your Business Do You Actually Own?
Divide total liabilities by total assets: under 0.5 is healthy, over 0.7 is fragile, and lenders recompute it after adding your loan.
The Fed Just Hiked Rates for the First Time Since 2023: What 3.75–4% Means for Your Business Borrowing
The Fed raised rates to 3.75–4% on Sept 16, 2026 and prime hit 7.00% the next day: every prime-plus business line, SBA 7(a) loan and card reprices now.
Assuming the Seller's 3% Mortgage: How FHA, VA, and USDA Loan Assumptions Work in 2026
FHA, VA and USDA mortgages can be assumed at the seller's 3% rate while new loans cost 6.76%; the catch is the equity gap due at closing.
SBA SOP 50 10 8: What the New Collateral and Equity Injection Rules Mean for 7(a) Borrowers
SBA SOP 50 10 8, effective June 1, 2025, dropped the 7(a) collateral trigger from $500,000 to $50,000, requires liens on personal real estate with 25%+ equity for 20%+ owners, and tightened equity injection rules — HELOCs need outside income, seller notes must sit on full standby, and phased ownership buyouts are gone.