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T-EPF M4L2 Key Terms
Traditional EPF Module 4 Lesson 2 Key Terms
Term | Definition |
---|---|
Landlord | The owner of a property who rents it out to another person for a monthly sum of money. |
Tenant | Person who pays monthly sum of money to a property owner for the use of their home or apartment. |
Lease Agreement | Legally binding agreement signed by landlord and tenant to specify amount of rent and responsibilities of each party. |
Renter's Insurance | Insurance that protects the value of a tenant’s belongings in case of fire or other damage to rental property. |
Fixed Rate Mortgage | Loan from a lender with an interest rate that will not change over time. |
Adjustable Rate Mortgage | Loan from a lender with a fixed rate for a specific amount of time: after that time period, rate adjusts based on market interest rate. |
Annual Percentage Rate | The rate of interest that a lender will charge a borrower for a loan. |
Amortization Schedule | A schedule that shows how much interest and principal are paid each month over the life of a loan. |
Principle | Actual amount of money borrowed from a lender. |
Interest | Cost of borrowing money from a lender. |
Down Payment | Amount of money paid by a borrower towards the purchase of a house or car. |
Closing Costs | Attorneys’ fees, cost of inspections, and cost of a mortgage all paid at the closing or signing of the contract. |
Refinance | Changing the terms of a loan usually to obtain a lower interest rate or change the lending period. |
Home Equity Loan | Loan offered based on the value obtained through payments on a mortgage or an increase in property value. |