Personal Finance
Annual Renewable Mortgage (ARM)
lets you lock in a period of "insurability", which is the length of time you will be able to renew the policy annually without reapplying or taking another medical exam
asset
property owned by a person or company, regarded as having value and available to meet debts, commitments or legacies
range of credit scores
300-850
Federal Deposit Insurance Corporation (FDIC)
a United States government corporation providing deposit insurance to depositors in US banks
endorsement
a clause in an insurance policy detailing an exemption from or change in coverage
lease
a contract by which one party conveys land, property, services, etc. to another for a specified time, usually in return for a periodic payment
mortgage
a debt instrument, secured by the collateral of specified real estate property, that the borrower is obliged to pay back with a predetermined set of payments
fixed rate
a fully amortizing mortgage loan where the interest rate on the note remains the same through the term of the loan
title
a legal document that supports or takes up an individual's right to ownership and possession of all items that can be recognized as being owned or belonging to a person or a thing
Secured Loan
a loan in which the borrower pledges some asset as collateral for the loan, which then becomes a secured debt owed to the creditor who gives the loan
Automated Teller Machine (ATM)
a machine that automatically provides cash and performs other banking services on insertion of a special card by the account holder
credit union
a nonprofit-making money cooperative whose members can borrow from pooled deposits at low interest rates
creditor
a person or company to whom money is owed
debtor
a person or institution that owes a sum of money
malpractice insurance
a type of professional liability insurance purchased by health care professionals (and sometimes by other types of professionals, such as lawyers)
term
a word or phrase used to describe a thing or two express a concept, especially in a particular kind of language or branch of study
CD Investment
among the safest investment a person can make, is determined ahead of time and you are guaranteed to get back what you put in, plus interest once this investment matures
line of credit
an amount of credit extended to a borrower
premium
an amount to be paid for an insurance policy
demand
an economic principle that describes a consumer's desire and willingness to pay a price for a specific good or service
Down Payment
an initial payment made when something is bought on credit
long term goal
anything over three years
three places you can get car loans
banks, credit unions, and auto finance companies
three types of endorsements
blank, special, and restrictive
collateral
something that you pledge as security for repayment of a loan, to be forfeited in the event of a default
three things that are included in the total costs of owning a car
taxes, registration fees, and maintenance
principal
the amount borrowed or the amount still owed on a loan, separate from interest
net pay
the amount of pay remaining for issuance to an employee after deductions have been taken from the individual's gross pay, amount paid to each employee on pay day
liquidity
the availability of liquid assets (cash) to a market or company
default
the failure to promptly pay interest or principal when due. occurs when a debtor is unable to meet the legal obligation of debt repayment
time value of money
the idea that money available at the present time is worth more than the same amount in the future due to its potential earning capacity
compounding interest
the interest calculated on the initial principal and also on the accumulated interest of previous periods of a deposit or loan
Annual Percentage Rate (APR)
the interest rate for a whole year rather than just a monthly fee/rate, as applied on a loan, mortgage loan, credit card, etc.
minimum balance
the least amount of money that you can pay on your credit card each month, and if you only pay this each month it might be a while before it is paid off
opportunity costs
the loss of potential gain from other alternatives when one alternative is chosen
point of sale transaction
the point where a transaction is finalized or the moment where a customer tenders payment in exchange for goods and services
grace period
the provision in most loan and insurance contracts which allows payment to be received for a certain period of time after the actual due date
gross pay
the total amount of money you get before taxes or other deductions are subtracted from your salary
easy way to find total interest paid
when you subtract the principal, the amount of money borrowed, from the total amount you paid, you get the total interest paid
cosign
you have agreed to become obligated to repay the amount of the loan if the primary borrower does not
interest
you usually get this when you put principal in a bank
comprehensive insurance
your insurance company pays for damage to your auto caused by an event other than a collision, such as fire, theft, or vandalism