Terms
Amortization
What is The paying off of debt with a fixed repayment schedule in regular installments over a period of time
Fixed-Rate Loan
What is A loan in which the interest rate is determined before loan is granted and remains constant as long as on time payments are being made
Fixed-Rate Mortgage
What is A mortgage that has a fixed interest rate for the entire term of the loan as long as ontime payments are being made
Late Payment Fee
What is A fee charged if your payment is received after the due date
Credit Card
What is 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
Collateral
What is Something valuable that the lender can take as payment if you can't or don't repay your secured loan
Direct Plus Loans
What is A federal loan available to graduate or professional students and eligible parents of dependent undergraduate students to help pay for the cost of the student's education at participating schools
Lease
A contract (often used for property) by which one party gives property to another for a specified time, usually in return for a periodic payment
Co-Signer
What is Someone who legally agrees to take responsibility for a person's debt if they cannot repay it
Credit Limit
The maximum amount that may be borrowed on a credit card
Interest
What is The amount you owe as the cost of borrowing money
Direct Unsubsidized Loan
What is A student loan where the student is responsible for the interest during the time they are in school, which means they must pay that interest while studying or have it rolled into their loan
Mortgage
What is A loan by individuals and businesses to make real estate purchases without paying the entire value of the purchase up front
Loan
What is an agreement where you are credited with a fixed amount of money for a fixed period of time, usually with interest
Late Payment Fee
What is A fee charged if your payment is received after the due date
Down Payment
What is
What is A partial payment made in cash at the beginning of the purchase of a good or service, while the remaining balance is due later or is financed as part of a loan
Term
What is the amount of time you have to repay your entire loan
Home-Equity Loan
What is A consumer loan extended to a homeowner that uses the borrower's home as collateral
Interest Rate
What is The rate charged for borrowing money usually expressed as a percent of the amount borrowed
Statement
A monthly record of your account transactions provided by your credit card company electronically or on paper
Principal
What is Original amount of money borrowed, separate from interest or fees
Secured Debt
What is Debt tied to a specific tangible asset that can be used as collateral and reposed if payments are not made
Home Equity Line Of Credit (HELOC)
What is A line of credit extended to a homeowner that uses the borrower's home as collateral
Peer-To-Peer Lending
A method of debt financing that enables individuals to borrow and lend money without the use of a financial institution as an intermediary
Introductory APR
What is The typically low rate charged during the introductory period after a credit account is opened, after which the regular, typically higher, APR will apply