Month: April 2021

Different airplane parts have different purposes. Let’s take a look at some of the most important parts and their functions.

1. Fuselage

Fuselage or the plane’s body holds the aircraft together. It’s the main component that ensures that the pilots, passengers, and cargo travel safely.

2. Cockpit

Cockpit is the area from where the pilots operate the plane. It contains various parts, such as the side consoles, overhead panel, rudder pedals, pilot seats, flight controls, and instrument panel.

• Side consoles – They help communicate documents with other flight staff.

• Overhead panel – It contains crucial aircraft systems, such as electricity, fuel, hydraulics, and air conditioning.

• Rudder pedals – They control the flight’s yaw. The pilots use these pedals to steer the airplane on the ground.

• Pilot seats – As the name suggests, these are for the pilot and co-pilot.

• Flight controls – These help to steer the airplane in the air. They allow the pilot to keep the flight under control and help it land safely.

• Instrument panel – This is almost like a car’s dashboard. It provides the flight’s information, such as fuel capacity, engine performance, distance traveled, distance left, and various other details.

3. Wings

An airplane’s wings’ lift production helps to give direction to the flight. It also contains various parts, such as flaps, ailerons, spoilers, slats, and winglets.

• Flaps – The trailing edge of the wings contains the flaps. They move symmetrically on different sides and create higher lifts and drags. Flaps are essential during landing and takeoff. They create additional lifts and increase or decrease the flight’s speed.

• Ailerons – Ailerons, along with rudder and elevator, are the three essential control surfaces of an airplane. They help pilots control the plane’s roll from left to right or vice versa.

• Spoilers – Spoilers help pilots descend the airplane and reduce its lift component.

• Slats – Slats are like flaps that help in changing the airplane’s direction by temporarily increasing the wings’ lift capacity.

• Winglet – Winglets reduces the flight’s induced drag.

4. Tail

An airplane’s tail provides stability and creates lifts by combining with the wings. The most important parts of a tail are the vertical stabilizer and rudder and horizontal stabilizer and elevator.

• Vertical stabilizer and rudder – It allows the aircraft to weathervane into relative wind. The vertical stabilizer prevents side-to-side motion of the airplane’s nose. On the other hand, the rudder controls the vertical stabilizer’s trailing edge. It allows the pilot to control the left and right pedals efficiently.

• Horizontal stabilizer and elevator – The horizontal stabilizer prevents the aircraft’s nose from going up and down. The stabilizer’s hinged part allows the pilot to pull back on the yoke, thus pushing the elevators to go up and the tail to come down while increasing the flight’s lift.

5. Engine

The engine is the airplane’s powerhouse. It creates the thrust that the aircraft needs to fly. Airplanes usually have two types of engines: turbine and reciprocating.

6. Propeller

The propeller creates thrust to the airplane’s drive, thus allowing it to move forward. You will see the propeller attached to the engine. It spins quickly to create a lift that creates pressure differences that help the aircraft to move upwards. The sudden thrust causes the wings to cut through the air, thus creating a vertical lift.

7. Landing gear

Landing gear softens the impact of the shock strut, front tire, and back tire when the plane lands. It is a retractable part that goes inside the fuselage once the plane lands safely.

An airplane’s smooth functioning depends on these parts. They combine together to make flights safe for everyone.

Do you ever wonder how lending companies make money? Mortgage lenders earn in different ways. Lenders make money out of loans. What makes them different from brokers is the fact that they lend money out of their own resources. Brokers act as middlemen between a lender and a borrower. It’s also possible for lenders to utilize depositor’s funds or they may choose to borrow money from bigger banks at an interest rate. Lenders earn from the loan as well as the interest fees obtained from the process. Let’s find out how lenders make money.

Origination Fees – since lenders use their own money when providing mortgages, they charger the borrow what you call origination fee. This is approximately 0.5% to 1% of the total value of the loan and is due with the payments. Basically, if you add the origination fee then it will also increase the borrower’s interest rate, which will affect the total cost of a home.

Let’s look at this example. Assuming you want to loan $200,000. This loan has a 6% interest rate that is payable for 30 years with an origination fee of 2%. As a bower, you’ll need to pay $4,000 for the origination fee together with other fees when the loan is closed. The monthly payment is supposed to be $1,199 based on the 6% computation. But, since you will also include the origination fee which is $4,000 then you need to divide that for 30 years. Your overall payment including the origination fee will be $1,210. If you look at the computations, you’re actually paying an 8% interest rate instead of 6% because of the origination fee.

Yield Spread Premium – mortgage lenders offer loans by using funds that come from their depositors or they can get money from banks at a much lower interest rate. YSP or Yield Spread Premium is the difference between the interest rate charged to the borrower and the rate the lender pays from the money borrowed. To help you understand, here’s an example. A lender borrows funds with a 4% interest rate to extend a loan. He then will charge the borrower a total of 6% interest rate. Therefore, the lender earned approximately 2% interest from the loan.

Discount Points – the discount point is also part of the loan and is due at the closing. This will help you get a lower mortgage interest rate. A single discount point is equivalent to 1% of the total mortgage amount. This will reduce the loan amount to up to 0.25%.

Mortgage-Backed Securities – do you know that lenders can pack less profitable mortgages with higher profit ones into packages? They call this mortgage-backed security. For example, they can tap into insurance companies and pension funds that buy these packages as their long-term income. When these are sold, lenders earn from the sale. The risk is relatively low.

Loan Servicing – when lenders service loans that are sold in mortgage-backed securities they are also earning. They do all the work like processing payments and doing other administrative tasks that are part of the loan that the buyer isn’t capable of doing. They may charge a periodic fee or ask for a percentage of the loan for their services. This is another way for lenders to make money.

Takeaway

With properties increasing in value and in cost, it can be difficult for homebuyers to pay sellers up front, which is why they turn to lenders to help them financially. Home buyers need to understand how lenders earn and how they can extend a loan to borrowers. If you are contemplating purchasing a home but you don’t have enough resources to afford it, helps to learn about the process. Certain techniques will allow you to save thousands of dollars on your loan.