| A | B |
|---|
| Adjustable-Rate Mortgage (ARM) | A mortgage in which the initial interest rate is normally fixed for a specified period of time after which it is reset periodically, often every month |
| Amortization | The paying off of debt with a fixed repayment schedule in regular installments over a period of time |
| Collateral | Something valuable that the lender can take as payment if you can't or don't repay your secured loan |
| Down Payment | A partial payment made in cash at the beginning of the purchase of a good or service, while the remaining balance is due later or is financed as part of a loan |
| Fixed-Rate Loan | A loan in which the interest rate is determined before loan is granted and remains constant as long as ontime payments are being made |
| Installment Loan | Loan used to finance a specific purchase for a specific amount of time, during which regular payments pay the accrued interest and a portion of the principal |
| Loan | An agreement where you are credited with a fixed amount of money for a fixed period of time, usually with interest |
| Principal | Original amount of money borrowed, separate from interest or fees |
| Term | The amount of time you have to repay your entire loan |
| Co-Signer | Someone who legally agrees to take responsibility for a person's debt if they cannot repay it |
| Late Payment Fee | A fee charged if your payment is received after the due date |
| Unsecured Debt | Debt not tied to a specific asset, making it difficult or impossible for the lender to repossess items if payments are not made |
| Secured Debt | Debt tied to a specific tangible asset that can be used as collateral and reposed if payments are not made |
| Mortgage | A loan by individuals and businesses to make real estate purchases without paying the entire value of the purchase up front |
