Chapter 4: Money in Review
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Created by:
czambrana83 on October 24, 2011
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21 terms
Terms | Definitions |
|---|---|
 Annual Fee | An amount that credit card companies can charge for the use of a credit card. |
| Annual Percentage Rate | the total cost of credit expressed as a yearly percentage |
| Adjustable Rate Mortgage (ARM) | Loan that has a fluctuating interest rate, usually one tied to a cost-of-funds index; the cost of doing business is the margin that stays fixed and is added to the base rate |
| Balloon Mortgage | a mortgage in which the entire remaining balance of the loan is due in one single payment |
| Credit | Money Owed |
| Credit Card | A plastic card used to make purchases now and pay for them later. |
| Credit Limit | the maximum amount of credit a lender will extend to a customer |
| Debit Card | a card (usually plastic) that enables the holder to withdraw money or to have the cost of purchases charged directly to the holder's bank account |
| Debt Consolidation | act of combinging all debts into one monthly payment, typically extending the terms and the length of time required to repay the debt |
| Debt Snowball | a strategy for reducing credit card debt that involves paying the minimum on all other card bills while attacking the one with the lowest balance |
| Depreciation | a decrease in price or value |
| Finance Charge | is the total dollar amount you pay to use credit. |
| Foreclose | to take possession of a property from a mortgagor because of defaults on payments |
| Grace Period | a time period during which no finance charges will be added to your account |
| Home Equity Loan | a loan secured by equity value in the borrower's home |
| Introductory Rate | 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. |
| Lease | a contract granting use or occupation of property during a specified time for a specified payment |
| Loan Term | The length of time you have to pay off a loan. |
| Myth | an imaginary story that has become an accepted part of the cultural or religious tradition of a group or society |
| Paradigm | the generally accepted perspective of a particular discipline at a given time |
| Tax Deduction | a reduction in the gross amount on which a tax is calculated |
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