Credit Risk


Definition of "Credit risk"

Nora Haddow
  All Towne Realty

Possibility that a borrower will not be able to service the debt (pay the interest on the borrowed funds) or make the principal payments when due. The greater this type of risk, the greater the yield.


Search Real Estate Glossary

 

Related Real Estate Glossary terms

Estate Of Inheritance

An estate which descends to heirs in perpetuum. In an estate of inheritance, the current tenant not ...

Flexible Enhanced Ordinary Life

Modified enhanced ordinary life in which there is a combination of dividends purchasing PAID-UP A ...

Beneficiary Of Trust

Person for whom the trust was created and who receives the benefits thereof. In many instances a tru ...

Beamed Ceiling

Horizontal supports for the ceiling of a structure. ...

Actuarial

Same as term: Actuarial Science: branch of knowledge dealing with the mathematics of insurance, incl ...

Disability, Total

Inability of the insured to perform any and all important daily duties of that insured's occupation. ...

Related Real Estate FAQ

Should I Pay Points For A Lower Rate?

Paying points for a lower interest rate is a trade off between paying money now versus paying money ...

What Is An Interest Rate?

An interest rate is the percentage the lender charges you for borrowing money. ...

What Is A Subprime Mortgage?

A subprime mortgage is a mortgage granted to a borrower who is considered subprime-that is, a person ...

What Is Accession?

The right of a property owner to have and enjoy all of the advantages of property ownership includin ...

What Is Joint Tenancy?

A joint tenancy is an equal, undivided ownership in a property by two or more individuals. ...

What Is Flood Insurance?

Flood insurance is insurance that compensates for the physical property damage resulting from rising ...

Read why Real Estate Agent rates 5 Stars in 10 Agent Reviews
Read Reviews

Agents join here
Add our widget on your Website

Real Estate Advice

Top Five Reasons Your Home Offer was Rejected 3 tips to ensure your sale goes through 10 Tips for Homebuyers Why Right Now is a Good Time for Millennials to Buy a Home Foreclosure - The Pros and Cons of Buying

FAQ

What is a mortgagee? What is joint tenancy? I dont know the zip code of my areas. How do I find an agent that is right for me in my area. What is a deed? Do I need Earthquake Insurance?