Math Midterm 2019
Cosigners
- people other than the borrower who promise the loan will be paid.
adjusted monthly income.
The buyer's gross monthly income minus any fixed monthly payments with more than 10 months remaining is known as the buyer's ...
gross monthly income
The buyer's monthly income before any deductions is called ...
Fixed installment loans
a fixed amount is paid for a fixed number of payments (Auto, student loans, mortgage).
Partial Payment
a payment that is less than the full amount owed and made prior to the due date.
Finance charges
any charges you pay on a loan besides the principal.
Security/Collateral
anything of value offered by the buyer in case they don't pay back the loan.
Points
interest prepaid by the buyer and may be used to reduce the stated interest rate the lender charges
Compound interest
interest that is computed on the principal and accumulated interest
homeowner's mortgage
long-term loan in which the property is pledged as a security for payment of the difference between the down payment and the sale price.
Interest
money the borrower pays to use the principal
Open installment loans
payment varies each month (credit cards)
Credit
the amount the lender will lend you
Principal
the original amount of the loan (not including interest)
Total installment price
the total amount paid for a loan
28/36 Rule
used by banks to determine if a buyer qualifies for a mortgage