Credit, Loans & Mortgages

  1. Revolving Loan Facility

    A financial institution that allows the borrower to obtain a business or personal loan where the borrower has the flexibility ...
  2. Residential Mortgage-Backed Security (RMBS)

    A type of security whose cash flows come from residential debt such as mortgages, home-equity loans and subprime mortgages. ...
  3. Promissory Note

    A financial instrument that contains a written promise by one party to pay another party a definite sum of money either on ...
  4. Personal Property

    A type of property which, in its most general definition, can include any asset other than real estate. The distinguishing ...
  5. Periodic Interest Rate

    The interest rate charged on a loan or realized on an investment over a specific period of time. Most interest rates are ...
  6. Mortgage Servicing Rights - MSR

    A contractual agreement where the right, or rights, to service an existing mortgage are sold by the original lender to another ...
  7. Microfinance

    A type of banking service that is provided to unemployed or low-income individuals or groups who would otherwise have no ...
  8. Loan

    The act of giving money, property or other material goods to a another party in exchange for future repayment of the principal ...
  9. Forbearance

    A temporary postponement of mortgage payments.
  10. Discretionary Income

    The amount of an individual's income that is left for spending, investing or saving after taxes and personal necessities ...
  11. Creditor

    An entity (person or institution) that extends credit by giving another entity permission to borrow money if it is paid back ...
  12. Credit Score

    A statistically derived numeric expression of a person's creditworthiness that is used by lenders to access the likelihood ...
  13. Bridge Loan

    A short-term loan that is used until a person or company secures permanent financing or removes an existing obligation. This ...
  14. Balloon Loan

    A type of loan which does not fully amortize over its term. Since it is not fully amortized, a balloon payment is required ...
  15. Balloon Payment

    An oversized payment due at the end of a mortgage, commercial loan or other amortized loan. Because the entire loan amount ...
  16. Amortization Schedule

    A complete schedule of periodic blended loan payments, showing the amount of principal and the amount of interest that comprise ...
  17. Mortgage-Backed Security (MBS)

    A type of asset-backed security that is secured by a mortgage or collection of mortgages. These securities must also be grouped ...
  18. Prepayment Risk

    Prepayment risk is the risk associated with the early unscheduled return of principal on a fixed-income security.
  19. Fully Amortizing Payment

    A periodic loan payment, part of which is principal and part of which is interest, where if the borrower makes payment according ...
  20. 5-1 Hybrid Adjustable-Rate Mortgage - 5-1 Hybrid ARM

    An adjustable-rate mortgage (ARM) with an initial five-year fixed-interest rate. After this initial five-year period, the ...
  21. Escrow Agent

    An entity that has fiduciary responsibilities in the transfer of property from one party to another. Typically associated ...
  22. Delinquent

    The failure to accomplish what is required by law or duty, such as the failure to make a required payment or to perform a ...
  23. Buyer's Market

    A situation in which supply exceeds demand, giving purchasers an advantage over sellers in price negotiations. Buyer's Market ...
  24. Floating Charge

    A security (i.e. mortgage, lien, etc.) that has an underlying asset or group of assets which is subject to change in quantity ...
  25. Homeowners Association Fee - HOA Fee

    An amount of money that must be paid monthly by owners of certain types of residential property to an organization that assists ...
  26. Credit Risk

    The risk of loss of principal or loss of a financial reward stemming from a borrower's failure to repay a loan or otherwise ...
  27. Chattel Mortgage

    A term used to describe a loan arrangement in which an item of movable personal property is used as security for the loan. ...
  28. Hypothecation

    The established practice of a borrower pledging an asset as collateral for a loan, while retaining ownership of the assets ...
  29. Fixed Interest Rate

    An interest rate on a liability, such as a loan or mortgage, that remains fixed either for the entire term of the loan or ...
  30. Discount Points

    A type of prepaid interest mortgage borrowers can purchase that lowers the amount of interest they will have to pay on subsequent ...
  31. Five Cs Of Credit

    A method used by lenders to determine the credit worthiness of potential borrowers. The system weighs five characteristics ...
  32. Collateralized Mortgage Obligation - CMO

    A type of mortgage-backed security in which principal repayments are organized according to their maturities and into different ...
  33. Netting

    Consolidating the value of two or more transactions, payments, or positions in order to create a single value.
  34. Points

    1. A 1% change in the face value of a bond or a debenture. 2. In futures contracts, a price change of one one-hundredth, ...
  35. Cash Equity

    1. In real estate, the amount of money an owner has invested in the property. If someone bought a house, the down payment ...
  36. Deed Of Reconveyance

    A document issued by a mortgage holder indicating that the borrower is released from the mortgage debt. The deed of reconveyance ...
  37. Origination

    The process of creating a home loan or mortgage. During the origination process, a borrower submits a variety of financial ...
  38. Can student loans garnish your bank account?

    The U.S. government and private lenders can garnish your bank account to recover unpaid student loans in multiple ways
  39. NY Fed Says 15% of Americans Have Negative Wealth

    A study has found 15% of Americans are experiencing negative wealth.
  40. Back to School: Basic Math for Buying a New Home

    Buying a home should be a wonderful milestone. With simple math, you can figure out what size mortgage and home work for ...
  41. 3 Reasons Millennials Are Not Interested in Mortgages

    Tougher lending standards make borrowing to buy homes harder for millennials.
  42. How is the minimum payment on a credit card calculated?

    Even when minimum payments are low, consumers should still aim to pay off credit card balances every month.
  43. Reverse Mortgage Initial Principal Limit

    The amount of money a reverse mortgage borrower can receive from the loan. The initial principal limit depends on the borrower’s ...
  44. Beware of No Credit Check Loans

    Consumers with weak finances often rush to "no credit-check" loans, but this debt poses significant financial dangers for ...
  45. Can Direct Consolidation Loans be deferred?

    Student loans bundled into direct consolidation loans may be deferred under certain circumstances.
  46. 3 Hottest Real Estate Markets in U.S.

    These three cities had the biggest real estate price gains in May.
  47. How Reverse Mortgages Work

    Looking into a reverse mortgage may be a good option for accessing the equity in your home if you are retired.
  48. The 5 Biggest Factors That Affect Your Credit

    Credit companies rely on these factors to determine whether to lend to you and at what rate.
  49. Should You Rent or Buy a Home?

    Owning a home is part of the American dream, but it is a major financial undertaking with considerable pros and cons.
  50. Student Loan Forgiveness: How Does It Work?

    With student loan debt at an all-time high, more graduates are considering loan forgiveness programs.
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