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Amount of periodic _____ to satisfy mortgage loans, car loans, and other loans.
What is payment?
A debt instrument used in a real estate loan
where the property is the collateral. This gives
the lender a right to foreclose on the property
if the borrower fails to pay off the loan.
What is a mortgage?
A bank contract that identifies the account
owner and authorized signers of each deposit
account.
What is a signature card?
A detailed report of an individual's credit
history prepared by a credit bureau and
used by a lender in determining a loan
applicant's creditworthiness.
What is a credit report?
A demand deposit account subject to
withdrawal of funds electronically or by
check.
What is a checking account?
A written contract between a borrower and
a lender that sets terms and conditions; ex.
amount, rate, fee, maturity, collateral.
What is a loan?
A form of electronic banking offered by
banks to allow account holders to access
certain account information using
a smart phone.
What is mobile banking
The cost of using money.
What is interest?
The act of evaluating and setting the value
of a specific piece of personal or real
property.
What is an appraisal?
When the amount of money withdrawn from
a bank account is greater than the amount
actually available in the account
What is an overdraft?
The cost of credit on a yearly basis,
expressed as a percentage.
What is APR? (Annual percentage rate)
A fee charged by a lender to make a loan
(in addition to the interest charged to the
borrower).
What is a loan fee?
A signature on the back of the check that
transfers ownership of the check.
What is an endorsement?
A card issued by the bank that allows the
account owner to immediately access their
funds electronically.
What is a debit card?
Assets that are offered by the borrower to
secure a loan.
What is collateral?
The Federal Deposit Insurance Corporation is
a government corporation that insures the
deposits of all national and state banks that
are members of the Federal Reserve System.
What is FDIC? (The Federal Deposit Insurance Corporation)
Common acronym for principal, interest,
taxes, and insurance—used when describing
the monthly payment on a mortgage loan.
What is PITI? (principal, interest, taxes, and insurance)
A home equity line of credit is secured by the
equity in a consumer's home. It can be used
for home improvements, debt consolidation,
and other major purchases.
What is HELOC? (A home equity line of credit)
A person, firm, or corporation with insufficient
assets to cover their debts.
What is bankrupt?
The process of reducing debt through
regular installment payments of principal
and interest that will result in the payoff of
a loan at its maturity.
What is amortization?
The amount paid by a borrower to a lender
in exchange for the use of the lender's
money usually expressed as a percentage
and noted on an annual basis.
What is interest rate?
A deposit account subject to limited
withdrawals, but may be accessed
immediately.
What is a savings account?
A legal process in which property that is
collateral for a loan may be sold to help
repay the loan when the loan is in default.
What is foreclosure?
An adjustable rate mortgage is a type of
loan where the interest rate and payment
may change over the life of the loan as
market conditions change.
What is ARM? (adjustable rate mortgage)
The outstanding balance on a loan,
excluding interest and fees.