| A | B |
|---|
| landlord | the owner of a property who rents it out to another person for a monthly sum of money |
| tenant | person who pays monthly sum of money to a property owner for the use of their home or apartment |
| lease agreement | legally binding agreement signed by landlord and tenant to specify amount of rent and responsibilities of each party |
| renter’s insurance | insurance that protects the value of a tenant’s belongings in case of fire or other damage to rental property |
| fixed rate mortgage | loan from a lender with an interest rate that will not change over time |
| adjustable rate mortgage | loan from a lender with a fixed rate for a specific amount of time: after that time period, rate adjusts based on market interest rate |
| APR (annual percentage rate) | the rate of interest that a lender will charge a borrower for a loan |
| amortization schedule | a schedule that shows how much interest and principal are paid each month over the life of a loan |
| principal | actual amount of money borrowed from a lender |
| interest | cost of borrowing money from a lender |
| down payment | amount of money paid by a borrower towards the purchase of a house or car |
| closing costs | attorneys’ fees, cost of inspections, and cost of a mortgage all paid at the closing or signing of the contract |
| refinance | changing the terms of a loan usually to obtain a lower interest rate or change the lending period |
| home equity loan | loan offered based on the value obtained through payments on a mortgage or an increase in property value |
