Personal Finance Chapters 5, 6, 7.

collateral

a valuable asset that is pledge

warranty

a written guarantee from the manufacturer or distributor of a product that specifies the conditions under which the product can be returned, replaced or repaired

a service contract

an agreement between a business and a consumer to cover the repair costs of a product.

Credit

an arrangement to receive cash, goods, or services now and fay for them in the future

appraisal

an estimate of the current value of a property

condominium

an individually owned housing unit built with several such units

APR

annula percentage rate. the percentage cost (or relative cost) of credit on a yearly basis. The APR yields a true rate of interest for comparisons with other sources of credit

closing cots

fees and charges paid when a real estate transaction is completed also called settlement costs.

title insurance

insurance that, during the mortgage term, protects the owner or the lender against financial loss resulting from future defects in the title and from other unforeseen property claims not excluded by policy.

simple interest

interest computed on principal only and without compounding

escrow account

money, usually deposited with the lending financial institution, for the payment of property taxes and homeowner's insurance.

legal aid society

one of a network of publicly supported community law offices that provide legal assistance to consumers who cannot afford their own attorney

closed-end credit

one time loans that the borrower pays back in a specified time and in payments of equal amount

line of credit

the dollar amount, which may or may not be borrowed, that a mender makes available to a borrower

conditions

the general economic conditions that can affect a borrower's ability to repay a loan

amortization

the reduction of a loan balance through payments made over a period of time

arbitration

the settlement of a difference by a third party whose decision is legally binding

finance charge

the total dollar amount paid to use credit

consumer credit

the use of credit for personal needs (except a home mortgage)

mediation

the attempt by an impartial party to resolve a difference between two parties though discussion and negation

capital

the borrower's assets or net worth

character

the borrower's attitude toward his or her credit obligations

capacity

the borrower's financial ability to meet credit obligations

ARM

Adjustable rate mortgage: a home loan with an interest rate tat can change during the mortgage term due to changes in market interest rates;also called a flexible-rate mortgage or a variable-rate mortgage

FCBA

Fair credit billing act. Sets procedures for promptly correcting billing mistakes, refusing to make credit card payments on defective goods, and promptly crediting payments.

small claims court

a court that settles legal differences involving amounts below a set limit and employs a process in which the litigants usually do not use a lawyer

deed

a document that transfers ownership of a property from one party to another

cooperative housing

a form of housing in which a building containing a number of housing units is owned by a non profit organization whoe members rent the units

class action suit

a legal action taken by a few individuals on behalf of all the people who have suffered the same alleged injustice

lease

a legal document that defines the conditions of a rental agreement

open end credit

a line of credit in which loans are made on continuous basis and the borrower is billed periodically for at least partial payment

mortgage

a long-term loan on a specific piece of property such as a home or other real estate

interest

a periodic change for the use of credit

earnest

a portion of the price of a home that the buyer deposits as evidence of good faith to indicate a serious purchase

revolving check credit

a pre arranged loan from a bank for a specific amount; also called bank line of credit

points

prepaid interest charged by the lender

zoning laws

restrictions on how the property in an area can be used

mobile commerce

the ability to purchase using a mobile device