| A | B |
|---|
| Mortgage | loan from bank used to purchase a home |
| Collateral | something pledged as security for repayment of a loan |
| Promissory Note | legal document that is essentially a written promise to pay someone |
| Term | the length of a loan, most commonly 15 years or 30 years |
| Principal | the amount of money borrowed to purchase a home |
| Interest Rate | the cost of borrowing money expressed in a percentage |
| UPB | remaining balance of a loan that has not yet been paid back to the lender |
| Amortization | paying of an amount owed over time by making pre-determined, incremental payments of principal and interest |
| Foreclosure | when the bank or creditor takes possession of a property after the borrower fails to pay the mortgage |
