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Consumer loans
consumer loans vocabulary
| Term | Definition |
|---|---|
| Acceptance (referring to real estate contracts) | the agreement or consent of all parties involved in a transaction |
| Adjustable-rate mortgage (ARM) | a mortgage that has an interest rate that is at first lower than that of a mortgage with a fixed rate and it is periodically adjusted to the cost of the funds to the lender (the rate is adjusted) |
| Amortization table | a table that shows you how your payment breaks down into principle and interest paid and it also shows how much principle you have left to pay |
| Closing costs (referring to a mortgage) | closing cost are the fees of the homes purchase price that buyer and seller pays to the service providers |
| Collateral | property pledged by a borrower to protect the interest of the lender |
| Counteroffer (referring to real estate contracts) | a response to an initial offer, that makes the terms of real estate, car sales, employment, or business investments more favorable |
| Earnest money | a deposit paid by a buyer to a seller to demonstrate a good faith intention to make a purchase |
| Equity (referring to real estate/housing) | the market value of real property,less the amount of any liens that may exist |
| Finance charge | a form of compensation to the lender for providing the funds,or extending credit to a borrower |
| Fixed-rate mortgage | when the interest rate remains the same over the term of the mortgage |
| Interest | a proportion of a loan that is charged as interest the borrower ( usually a percent of the loan that is added to the principle of the loan every month) |
| Lien | a charge upon real or personal property for the satisfaction of some debt or duty |
| Market value (referring to real estate) | market value is the value of the property under fair market conditions |
| Points (referring to a mortgage) | a form of prepaid interest you can choose to pay up front in exchange for a lower interest rate and monthly payments |
| Principal (referring to loans) | the original amount of money you borrow when you take out a loan |
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