39 relations: Adjustable-rate mortgage, Amortization, Amortization schedule, Annual percentage rate, Compound interest, Consumer Financial Protection Bureau, Consumer protection, Cost of funds index, Credit card, Credit card interest, Credit history, Default (finance), Discount points, Effective interest rate, European Union, Federal Reserve System, Fee, Fixed-rate mortgage, Geometric series, Good faith estimate, Internal rate of return, Jurisdiction, Late fee, Lease, Lenders mortgage insurance, Life insurance, Loan, Loan origination, Mathematical finance, Mortgage loan, Nominal interest rate, Origination fee, Prepayment of loan, Present value, Put option, Real estate appraisal, Representative APR, Truth in Lending Act, Yield (finance).
A variable-rate mortgage, adjustable-rate mortgage (ARM), or tracker mortgage is a mortgage loan with the interest rate on the note periodically adjusted based on an index which reflects the cost to the lender of borrowing on the credit markets.
Amortization (or amortisation) is paying off an amount owed over time by making planned, incremental payments of principal and interest.
An amortization schedule is a table detailing each periodic payment on an amortizing loan (typically a mortgage), as generated by an amortization calculator.
The term annual percentage rate of charge (APR), corresponding sometimes to a nominal APR and sometimes to an effective APR (or EAPR), is the interest rate for a whole year (annualized), rather than just a monthly fee/rate, as applied on a loan, mortgage loan, credit card, etc.
Compound interest is the addition of interest to the principal sum of a loan or deposit, or in other words, interest on interest.
The Consumer Financial Protection Bureau (CFPB) is an agency of the United States government responsible for consumer protection in the financial sector.
In regulatory jurisdictions that provide for this (a list including most or all developed countries with free market economies) consumer protection is a group of laws and organizations designed to ensure the rights of consumers, as well as fair trade, competition, and accurate information in the marketplace.
A cost of funds index or COFI is a regional average of interest expenses incurred by financial institutions, which in turn is used as a base for calculating variable rate loans.
A credit card is a payment card issued to users (cardholders) to enable the cardholder to pay a merchant for goods and services based on the cardholder's promise to the card issuer to pay them for the amounts so paid plus the other agreed charges.
Credit card interest is the principal way in which credit card issuers generate revenue.
A credit history is a record of a borrower's responsible repayment of debts.
In finance, default is failure to meet the legal obligations (or conditions) of a loan, for example when a home buyer fails to make a mortgage payment, or when a corporation or government fails to pay a bond which has reached maturity.
Discount points, also called mortgage points or simply points, are a form of pre-paid interest available in the United States when arranging a mortgage.
The effective interest rate (EIR), effective annual interest rate, annual equivalent rate (AER) or simply effective rate is the interest rate on a loan or financial product restated from the nominal interest rate as an interest rate with annual compound interest payable in arrears.
The European Union (EU) is a political and economic union of EUnum member states that are located primarily in Europe.
The Federal Reserve System (also known as the Federal Reserve or simply the Fed) is the central banking system of the United States of America.
A fee is the price one pays as remuneration for rights or services.
A fixed-rate mortgage (FRM), often referred to as a "vanilla wafer" mortgage loan, is a fully amortizing mortgage loan where the interest rate on the note remains the same through the term of the loan, as opposed to loans where the interest rate may adjust or "float".
In mathematics, a geometric series is a series with a constant ratio between successive terms.
A good faith estimate, referred to as a GFE, was a standard form that (prior to 2015) had to be provided by a mortgage lender or broker in the United States to a consumer, as required by the Real Estate Settlement Procedures Act (RESPA).
The internal rate of return (IRR) is a method of calculating rate of return.
Jurisdiction (from the Latin ius, iuris meaning "law" and dicere meaning "to speak") is the practical authority granted to a legal body to administer justice within a defined field of responsibility, e.g., Michigan tax law.
A late fee, also known as a late fine or a past due fee, is a charge fine against a client by a company or organization for not paying a bill or returning a rented or borrowed item by its due date.
A lease is a contractual arrangement calling for the lessee (user) to pay the lessor (owner) for use of an asset.
Lenders mortgage insurance (LMI), also known as private mortgage insurance (PMI) in the US, is insurance payable to a lender or trustee for a pool of securities that may be required when taking out a mortgage loan.
Life insurance (or life assurance, especially in the Commonwealth of Nations) is a contract between an insurance policy holder and an insurer or assurer, where the insurer promises to pay a designated beneficiary a sum of money (the benefit) in exchange for a premium, upon the death of an insured person (often the policy holder).
In finance, a loan is the lending of money by one or more individuals, organizations, and/or other entities to other individuals, organizations etc.
Loan origination is the process by which a borrower applies for a new loan, and a lender processes that application.
Mathematical finance, also known as quantitative finance, is a field of applied mathematics, concerned with mathematical modeling of financial markets.
A mortgage loan, or simply mortgage, is used either by purchasers of real property to raise funds to buy real estate, or alternatively by existing property owners to raise funds for any purpose, while putting a lien on the property being mortgaged.
In finance and economics, the nominal interest rate or nominal rate of interest is either of two distinct things.
An origination fee,, is a payment associated with the establishment of an account with a bank, broker or other company providing services handling the processing associated with taking out a loan.
Prepayment is the early repayment of a loan by a borrower, in part or in full, often as a result of optional refinancing to take advantage of lower interest rates.
In economics and finance, present value (PV), also known as present discounted value, is the value of an expected income stream determined as of the date of valuation.
In finance, a put or put option is a stock market device which gives the owner of a put the right, but not the obligation, to sell an asset (the underlying), at a specified price (the strike), by a predetermined date (the expiry or maturity) to a given party (the seller of the put).
Real estate appraisal, property valuation or land valuation is the process of developing an opinion of value, for real property (usually market value).
A Representative APR is a financial service concept in which credit or loan interest rates quoted through advertising media are required to take into account all charges associated with a product, in addition to the interest rate.
The Truth in Lending Act (TILA) of 1968 is a United States federal law designed to promote the informed use of consumer credit, by requiring disclosures about its terms and cost to standardize the manner in which costs associated with borrowing are calculated and disclosed.
In finance, the yield on a security is the amount of cash (in percentage terms) that returns to the owners of the security, in the form of interest or dividends received from it.
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