| A | B |
|---|
| grace period | the time between billing and the payment due dates when no interest is charged |
| compound interest | interest calculated on both the principal and the accrued interest of a loan or savings account |
| credit score | a rating used to help lenders decide whether to give a borrower a loan |
| foreclosure | the process by which a bank takes possession of a mortgaged property when payments are not being made |
| interest rate | percentage of the amount borrowed to be added to the loan total |
| lease | a contract granting use or occupation of property during a specified time for a specified payment |
| certificate of deposit | a type of savings account where the borrower leaves the principal in the account for a specific period of time |
| mortgage | A loan to purchase a home or other real estate |
| down payment | A portion of the total cost of an item that must be paid at the time of purchase |
| credit report | a document created by a credit agency that identifies a person's creditworthiness |
| FDIC | a federal organization that insures bank accounts for up to $250,000 per person per bank |
| bankrupt | when a court declares a person's debts to be greater than the total value of their assets |
| cosign | to sign a loan or lease with another person |
| tenant | the person who is renting a property |
| security deposit | A sum of money usually equal to one month's rent, held by the landlord to cover any damage to the apartment caused by a tenant |
