Mortgage Banker Interview Question:

What do you mean by term 'Loan Maturity' and 'Yield'?

Submitted by: Muhammad

The date on which the principal amount of a loan becomes due and payable is known as 'Loan Maturity'. Yield is commonly referred as the dividend, interest or return the investor receives from a security like stock or bond, interest on fix deposit etc. For example, any investment for $10,000 at interest rate of 4.25%, will give you a yield of $425.
Submitted by: Muhammad