| A | B |
|---|
| foreclosure | a legal process that allows lenders to recover the amount owed on a defaulted loan by taking ownership of and selling the mortgaged property. |
| Annual Percentage Rate (APR) | the annual cost of a loan to a borrower |
| FAFSA | Before each year of college, apply for federal grants, work-study, and loans with the Free Application for Federal Student Aid (FAFSA®) form. |
| Suggested amount of debt held on credit cards | 25% maintained debt to credit limit |
| The top category for weighing your credit | 35%-Payment history |
| inflation | an environment of generally rising prices of goods and services within a particular economy. |
| debt-to-income ratio | compares how much you owe each month to how much you earn. |
| Ways to bring down debt-to-income | Increase the amount you pay monthly toward your debt. Extra payments can help lower your overall debt more quickly. Avoid taking on more debt. ... Postpone large purchases so you're using less credit. ... Recalculate your debt-to-income ratio monthly to see if you're making progress. |
| conventional mortgage | a home buyer's loan that is not offered or secured by a government entity. |
| adjustable rate mortgage | type of mortgage in which the interest rate applied to the outstanding balance varies throughout the life of the loan. |
| fixed-rate mortgage | where your interest rate is locked in (i.e. fixed) for a certain period |
| government insured mortgage | that the mortgage is backed by the government. |
| Jumbo Mortgage | a home loan for an amount that exceeds the "conforming loan limit" set on mortgages |
| Rule of 72 | By dividing 72 by the annual rate of return, investors obtain a rough estimate of how many years it will take for the initial investment to duplicate itself. |
| credit reporting agencies | The three major national credit reporting agencies are Experian, Equifax and TransUnion. |
| item excluded from credit reports | credit scores are not included on the report |
| two things concerning car leases | miles and time |
| two up front costs for a home mortgage | down payment & closing costs |
| two up front costs for rentals | first and last months rent, damage deposit |
| amortization | the action or process of reducing or paying off a debt with regular payments. |
| highest weighted influence of a credit score | 35% of factoring credit scores is in payment history |
| renters insurance | an insurance policy that can cover theft, water backup damage, certain natural disasters, bodily injuries and more in a rented property |
| homeowners insurance | insurance coverage for your (home owner) home, its contents, and your possessions. |
| compound interest | when you earn interest on both the money you've saved and the interest you earn |
| simple interest | the method of calculating the interest amount for a particular principal amount of money at some rate of interest |
| depreciation | a reduction in the value of an asset with the passage of time, due in particular to wear and tear. |
