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A mortgage in which the initial interest rate is normally fixed for a specified period of time after which it is reset periodically, often every month.
Adjustable-Rate Mortgage (ARM
The value of ownership built up in a home or property that represents the current market value of the house minus any remaining mortgage payments
Home Equity
The practice of funding a project or venture by raising many small amounts of money from a large number of people, typically via the Internet.
Crowdfunding
Debt tied to a specific tangible asset that can be used as collateral and repossessed if payments are not made.
Secured Debt
A higher interest rate triggered by being late with or missing a credit card payment.
Penalty APR
A type of loan where you borrow money from your retirement savings account. You must pay that borrowed money back, plus interest, within 5 years of taking your loan, in most cases.
401(k) Loan
A consumer loan extended to a homeowner that uses the borrower's home as collateral
Home-Equity Loan
A standard table that legally must appear in a credit card agreement showing basic information about the card's rates and fees.
Schumer Box
Something valuable that the lender can take as payment if you can't or don't repay your secured loan.
Collateral
A mortgage that has a fixed interest rate for the entire term of the loan as long as on time payments are being made.
Fixed-Rate Mortgage
Fill in the Blank.
The paying off of debt over time in equal installments; part of each payment goes toward the loan principal while the other part goes toward interest.
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Amortization
Loan used to finance a specific purchase for a specific amount of time, during which regular payments pay the accrued interest and a portion of the principal.
Installment Loan
The cost you pay each year to borrow money, including fees, expressed as a percentage.
Annual Percentage Rate (APR)
A type of credit card that requires the borrower to pay the company a fixed, up-front amount of money as collateral, which becomes the credit limit of the card, thereby making it low-risk to the credit card company..
Secured Credit Card
A method of debt financing that enables individuals to borrow and lend money without the use of a financial institution as an intermediary.
Peer-To-Peer Lending
A mortgage that has a fixed interest rate for the entire term of the loan as long as on time payments are being made.
Fixed-Rate Mortgage
The typically low rate charged during the introductory period after a credit account is opened, after which the regular, typically higher, APR will apply.
Introductory APR
A loan that combines two or more education loans into a single loan, allowing the borrower to make a single monthly payment.
Consolidation Loan
A plastic card that allows you to make purchases now with borrowed money, which then you must repay to the lender in one lump sum or in monthly payments with interest..
Credit Card
A legal document that outlines the terms and conditions for using your credit card.
Credit Card Agreement
The number of days between a borrower's statement date and when payment is due, often without accruing interest.
Grace Period
A loan taken by individuals and businesses to make real estate purchases without paying the entire value of the purchase up front
Mortgage
An open line of credit that can be used for any purchases as long as you are under the limit; its payments vary monthly based on size of the debt.
Revolving Credit
A special type of credit card with no interest because you must pay the balance in full each month
Charge Card
A credit card service that allows cardholders to withdraw a certain amount of cash, either through an ATM or directly from a bank, typically at a high interest rate or for a fee
Cash Advance