The principal’s industry experience and operational history also play a role. A longer track record of successful operations and relevant experience indicates a lower risk of future claims. This suggests a greater understanding of regulatory compliance, which can result in more competitive premium rates. The actual expense to the principal is known as the premium, […]

In the final month, only $1.66 is paid in interest because the outstanding loan balance is minimal compared with the starting loan balance. At the start of the loan term, when the loan balance is highest, a higher percentage of each payment goes toward interest. Over time, as the loan balance decreases, the interest portion […]