borrowing power
Debt acquisition potential
Borrowing power is the amount of money a lender will allow someone to borrow, based on income, assets, existing debts, and credit history.
The term appears most often in mortgage contexts: With two incomes, their borrowing power increased significantly.
Banks calculate borrowing power to determine loan eligibility and maximum amounts.
- leverageBorrowed capital for amplified returns
- creditRecognition or payment deferral
- credit scoreNumerical measure of borrower reliability
- good creditStrong borrowing reputation
- collateralSecurity for debt
home equity · real estate · debt · loan · loan approval · mortgage · down payment · capacity · assets · lender · finance · bank · capital · interest · interest rate · principal · underwriting · ratio
- economic policymonetary policy, tax policy, fiscal discipline, fiscal stimulus, fiscal restraint
- Congress powersdeclare war, impeachment, lawmaking, appropriations, advice and consent
- creditcredit card, credit score, credit limit, credit cards, credit scores
- Home Equityhome equity loan, home equity line, HELOC, second mortgage, equity line
borrowing powernet worth
Assets less debts
liquid assets · equity · savings · cash on hand · cash reserves
borrowing powercreditworthiness
Ability to repay debts
credit risk · debt burden · insolvency · bankruptcy · bad credit
borrow, borrower, borrowers, borrowings, borrowed, power, powers, powered, powering