Question | Answer |
An interest rate that fluctuates or changes over the life of the loan. | Variable Rate |
An interest rate that stays the same. | Fixed Rate |
A portion of the total cost that is paid when a product or service is purchased. | Down Payment |
The amount of borrowed money that is still owed and on which interest is based. | Principal |
The total amount it costs the borrower to have the lender finance the loan. | Finance Charge |
If a loan is backed by collateral. | Secured Loan |
If a loan is not backed by collateral. | Unsecured Loan |
When a credit card company obtains a court order to take part or all of a debtor's paycheck if he or she stops making payments. | Garnishment of Wages |
When a creditor takes back or repossesses an item that you purchased on credit. | Repossess |
Having a resemblance in appearance, character, or quantity, without being identical. | Similar |
A part of a whole; an amount, section, or piece. | Portion |
Cause or enable (a condition or state of affairs) to continue. | Maintain |
Get, acquire, or secure something. | Obtain |
Money lent from one party to another at interest. | Loan |
A loan agreement secured by property. | Mortgage |
A loan where interest is based on the original principal alone. | Simple Interest |