fee charged by a credit card company for the use of their credit card
Annual Percentage Rate
cost of borrowing money on an annual basis; takes into account the interest rate and other related fees on a loan.
Adjustable Rate Mortgage (ARM)
home loan secured by a deed of trust or mortgage in which the interest rate will change periodically (i.e. annually); typically adjusted based on a published index such as the Treasury Bill or LIBOR; brought on as a result of high interest rates in early 1980s as a way for banks to transfer the risk of higher interest rates to the consumer.
home loan in which the sum of the monthly payments is insufficient to repay the entire loan; a final payment comes due, which is a lump sum of the remaining principal balance.
Tool used to finance a purchase
the maximum amount of credit a lender will extend to a customer
type of card, often bearing the seal of a major credit card company, issued by a bank and used to make purchases; unlike a credit card, the money comes directly out of a checking account; also called check card
act of combining all debts into one montly payment, typically extending the terms and the length of time required to repay the debt.
preferred method of debt repayment; includes a list of all debts organized from smallest to largest balance; minimum payments are made to all debts except for the smallest, which is attacked with the largest possible payments.
a decline in the value of property; the opposite of appreciation.
process by which the holder of a mortgage sells the property of a homeowner who has not made interest and/or principal payments on time as stipulated in the mortgage contract
time period during which a borrower can pay the full balance of credit due with no finance charges.
Home Equity Loan
credit line offered by mortgage lenders that allows a homeowner to borrow money against the equity in their home.
A temporary interest rate, advertised as a low APR to entice customers to apply for a credit card. After the introductory period, the interest rate will increase to the regular APR.
long-term agreement describing the terms under which property is rented
The length of time you have to pay off a loan.
information that has been passed on but is not true.
your belief system; the way you see or preceive things.
an expense that you are allowed to subtract from your adjusted gross income to arrive at your taxable income.