1/1 ARM |
A type of adjustable-rate mortgage with an initial rate set for the first y... |
10/1 ARM |
A type of adjustable-rate mortgage with an initial rate set for the first t... |
3-in-1 Credit Report |
Also referred to as a merged credit report, this report includes informatio... |
3/1 Interest-Only ARM |
A type of adjustable-rate mortgage with an initial rate set for the first t... |
401(k) |
Named after the portion of the federal tax code that authorizes it, a 401(k... |
Adjustable rate mortgage (ARM) |
In contrast to a fixed-rate mortgage, in which the interest rate paid by th... |
Adjusted gross income (AGI) |
This represents all of your taxable income minus specific adjustments, and... |
Alternative minimum tax (AMT) |
A tax provision designed especially to prevent wealthy filers from exploiti... |
Amortization |
The gradual settlement of a debt in which the debtor gives the creditor reg... |
Annual Percentage Rate (APR) |
The annual cost of credit summed up as a percentage of the outstanding debt... |
Annual Percentage Yield (APY) |
The effective rate of return/interest on an investment, including compoundi... |
Annuity |
A schedule of regularly dispersed payments which is guaranteed for a specif... |
Appraisal |
The estimated market value of a property, either for tax assessment or sale... |
Asset |
Anything owned that possesses monetary value in a market. Assets include pe... |
Audit |
In a general sense, an audit is an independent analysis of an entity's... |
Bankruptcy |
The legal declaration of financial insolvency. Declaring bankruptcy means t... |
Beacon Score |
One of the three most common credit scores, Beacon is the name of the FICO... |
Burden of proof |
Whichever side in a dispute must prove their case in order to win judgement... |
Capital expenditure |
Permanent improvements made to increase the value of property, such as cons... |
Capital gain |
Any positive difference between the selling price of an asset and the price... |
Cardholder |
The person in whose name a credit card company issues a line of credit. Som... |
Cardholder agreement |
The written contract which lays out the terms of agreement between a credit... |
Cash Advance (credit card) |
A credit card issuer may allow the cardholder to obtain cash using their ca... |
Cash-Out Refinance |
This type of loan modification/addition involves using the existing equity... |
Certificate of deposit (CD) |
CDs are a special type of time deposit in which the issuer (banks and other... |
Chapter 11 Bankruptcy |
Businesses that wish to restructure their debt without going under complete... |
Chapter 12 Bankruptcy |
Chapter 12 is a special type of bankruptcy reserved especially for farmers... |
Chapter 13 Bankruptcy |
This type of bankruptcy does not absolve one of responsibility for one... |
Chapter 7 Bankruptcy |
The most common type of bankruptcy, Chapter 7 is reserved for those wishing... |
Charge Card |
Charge cards function similarly to credit and debit cards, but with an impo... |
Chattel Mortgage |
A loan in which a borrower procures funds from a lender in order to purchas... |
Closing Costs |
The amounts that are charged by lenders and institutions in order to comple... |
Co-signer |
When a loan is taken out, it is sometimes the case that the borrower's... |
Collateral |
Any asset with monetary value that is used as security for a borrower in or... |
Compound interest |
Interest that is charged on the total value of the principal plus the inter... |
Comprehensive coverage |
A car insurance policy which covers more than just the costs associated wit... |
Credit Application |
The paperwork that a credit-issuing institution will require a prospective... |
Credit Bureaus |
The three financial analysis institutions, Equifax, Experian, and TransUnio... |
Credit Card |
Credit cards function similarly to charge and debit cards, but with importa... |
Credit History |
A generic term accounting for the sum history of a consumer's borrowin... |
Credit Limit |
In a revolving credit agreement such as that underlining a credit or charge... |
Credit Report |
The record of your credit history held by any of the three credit bureaus E... |
Credit risk |
In the simplest sense, credit risk is the chance that a borrower will be un... |
Credit Score |
A numerical score that is meant to represent a person's creditworthine... |
Credit union |
A cooperative non-profit financial institution formed by a non-financial gr... |
Debit Card |
Debit cards function similarly to credit and charge cards, but with an impo... |
Debt Consolidation |
The process of merging debts into a single loan and/or repayment schedule.... |
Deductions |
Amounts that can be subtracted from a person's gross or adjusted-gross... |
Default |
When a person or organization which is responsible for repaying a debt fail... |
Default risk |
More or less synonymous with credit risk, default risk is the chance a lend... |
