Home / Investment Bootcamp / Bootcamp Part 8 / learn what is residual income in 2 minutes

learn what is residual income in 2 minutes

Welcome to professrsavings.com, we teach finance basics.

Today we will teach you easy ways to get a cheaper mortgage  about two minutes.

Hi I’m your host Rayfil Wong.

Residual income is simply excess cash on a monthly basis.

This is calculated after all the required payments are made including mortgage payments, bills, and other debts.  

Let’s say that Professor Savings applies for a loan to expand his cupcake business.

The bank ask Professor Savings  to show a record of how much he pays out each month in expenses such as car, credit card, and mortgage payments.

Let’s say that Professor Savings brings in $5,000 a month but after all his expenses he is only left with $400 this allows the lender to understand more accurately how much is left over.

Residual income is a major factor in loan offers since banks want to make sure they get their money bank.  

Professor Savings signing out. Make sure you subscribe to our channel so you can learn more about finance basics.

Comments

comments

About professorsavings

Check Also

Learn What Stocks are in 2 Minutes

Welcome to professorsavings.com, we teach finance basics. Today we will teach you what stocks are. …

how much can i save refinancing

How Much Can I save refinancing? – Professor Savings

How Much Can I save refinancing? Hi Welcome to professorsavings.com   We bring you daily …