DEFINITION of 'Simple Interest'. A quick method of calculating the interest charge on a loan. Simple interest is determined by multiplying the interest rate by the principal by the number of periods. Where: P is the loan amount.
What exactly is an HOA or Homeowner Association? Who benefits from an HOA? Who is required to have an HOA? What kind of services does an HOA provide? The HOA or Homeowner Association. An HOA or Homeowner Association is a legal entity created to manage and maintain the common areas of a community. Typically these common areas consist of things like pools, clubhouses, landscaping, parks, streets and roads.
What are the different types of HOA loans or Condo Association Loans? HOA Line of Credit is similar in concept to a credit card. An association has a maximum limit it can access. Interest is paid only on the money used. The money can be prepaid with no penalty. The interest rate is variable, meaning it changes monthly. HOA credit lines normally carry terms up to five years. Term HOA Loan provides a homeowners association with all funds at once. The interest rate is locked, meaning the payments are the same amount every month for the life of the loan. An HOA term loan can range from 3 to 15 years.