Loans Glossary

Featured Loans Term: Interest - A charge paid for borrowing money, usually expressed as a percentage of the amount borrowed or interest rate.

More Loans Terms

A

• Amortization - Making payments on debts...
• Appreciation - When an asset increases...
• APR - Annual Percentage Rate. The...
• ARM - Adjustable Rate Mortgage. A...
• Assets - Anything of value. Any...
• Assumable Mortgage - A mortgage that can...

B

• Balloon Loan - Unlike an amortized loan,...
• Balloon Mortgage - A mortgage that has...
• Balloon Payment - The large payment left...
• Bank Draft - A payment method where...
• Base Price - The price of a...
• Bridge Loan - Short-term loan to provide...
• Buy Down - When the lender and/or...
• Buyer’s Market - When there are more...

C

• CLTV - Combined Loan-to-Value. The unpaid...
• Combination Loan - With this type of...
• Combined Stafford Loan - A long-term, low-interest loan...
• Consolidated Repayment Plan - The Federal Family Education...
• Convertible ARM - An adjustable-rate mortgage (ARM)...
• Current Asset - Assets that will normally...
• Current Liability - Liability that will normally...

D

• Debt - An amount owed for...
• Debt Consolidation - The act of replacing...
• Debt Consolidation - The act of replacing...
• Deed - A formal written instrument...
• Deferment - A period of time...
• Down Payment - Used in loans with...

E

• Equity - The difference between the...
• Escrow - An item of value,...

F

• FAFSA - Free Application for Federal...
• Fair Market Value - FMV. The highest price...
• Federal PLUS Loan Program - The Federal PLUS Loan...
• FFELP - Federal Family Education Loan...
• Fixed Rate Mortgages - A rate that does...
• Float Period - The float period refers...
• Forbearance - A period of time...

G

• Graduated Repayment Plan - A repayment schedule under...
• Gross Monthly Income - The total amount an...

H

• Home Equity Loan - A loan in real...

I

• Index - A table showing the...
• Indexed Rate - On variable loans, it's...
• Interest - A charge paid for...
• Interest Rate - The annual rate of...
• Interest Rate Adjustment Period - The interest rate adjustment...
• Interest-Only Loan - Loan payments have two...
• Interim Period - The period of time...

L

• Lender - The bank, mortgage company,...
• Lien - The right to retain...
• Line of Credit - Up to a certain...
• Liquid Assets - Cash or assets that...
• Lock Period - The amount of time...

M

• Margin - The amount a lender...
• Market Rate - The current rate of...
• Market Value - The highest price that...
• Monthly Periodic Rate - A number used in...
• Mortgage - A loan to finance...

N

• Net Income - Total income after taxes...
• Notice of Default - Any official notification that...

O

• Open-End Credit - A line of credit...
• Owner Financing - Financing provided by the...

P

• PITI - Principal, interest, taxes and...
• PMI - Private Mortgage Insurance. In...
• Principal - The amount borrowed, or...
• Promissory Note - A legally binding agreement...

R

• Rate - In lending, the amount...
• Rate Cap Insurance - Limits how much the...
• Refinancing - The process of paying...
• Renegotiable Rate Mortgage - A loan in which...
• Repayment Period - The period during which...
• Reverse Annuity Mortgage - RAM. A form of...

S

• Second Trust Loan - An alternative to private...
• Secured Debt - Money borrowed that is...
• Simple Interest - A method of computing...
• Standard Repayment Plan - A repayment schedule under...
• Subprime Borrower - A borrower with an...
• Subsidized Stafford Student Loan - A long-term, low-interest federal...

T

• Term - The time to reach...
• Term Mortgage - Usually a short-term fixed-rate...
• Title - Ownership of real property...
• Two-Step Mortgage - A mortgage in which...

U

• Underwriting - The analysis of the...
• Unsubsidized Stafford Student Loan - A long-term, low-interest loan...