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Common loan summary terms
Common loan summary terms
Written by Constantina Kokenes
Updated over a week ago

Some loan summary terms that are good to know are:

Rate: The interest rate you will earn while invested in that loan. All rates are annualized so if you are invested for less than a year you will receive only a potion of the stated rate.

​Remaining Term: The length of time left until it is expected the borrower will repay the loan (and therefore you will receive your repayment). It is measured in months so 6.2 months would be 6 months and 2 days

​Valuation: The ARV is the projected valuation of the project after completion of the proposed repairs, enhancements, and construction. A given property’s ARV estimate is informed by a variety of factors, including independent appraisals and comparable property sale prices. You can read more about this here: Generally speaking, the lower the percentage the lower the risk

​Payment Schedule: Groundfloor offers two types of loan payment structures: deferred payment and monthly payment. With a deferred payment loan structure, an investor will be repaid their principal and interest in one lump sum at the end of the loan, once the borrower repays their loan to Groundfloor.

​Loan Amount: The full amount of the original loan

​Remaining: The number of days left to invest in a property. If the remaining amount is fully funded before the remaining days elapses, the loan will no longer be able to be invested in. If the loan amount is not fully funded by the end of the remaining days, Groundfloor will cover the rest. You start earning interest from the moment you commit funds to a loan, regardless if it is full funded or not.

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