adjustable rate mortgage
A loan agreement in which the interest rate, payment amount, and length of the loan can change over time
amortization
Repaying a debt by making regular payments of principal and interest over a period of time
automatic payments
Payments that are made by transferring money electronically from a checking account to another account every billing period
balloon payment
A large loan payment that is much higher than the other payments and that must be paid at a set time, often as the last loan payment
certified check
A personal check for which payment is guaranteed by the bank on which it is drawn
closing costs
Expenses the borrower must pay in order to get a loan, such as appraisal fees, credit report fees, recording costs, and inspection fees
cosigner
A person who agrees to repay a loan if the borrower does not repay it
grace period
The amount of time you have before a credit card company starts charging you interest on your new purchases
installment loan
A type of debt in which you borrow money for a period of time with an agreed-upon interest rate and repayment plan
money order
A type of prepaid check that directs payment of a sum of cash to a payee
online banking
A service that allows you to make payments and manage your bank account using the bank's Web site
personal loans
Loans that are based on personal creditworthiness and do not require collateral
prepayment penalty
A fee charged for paying off a loan before the agreed-upon time
sales finance company
A type of lender that makes a loan for the purchase of consumer goods, such as cars or household appliances
secured loan
A debt agreement in which the borrower pledges property of value, called collateral, as security for the loan repayment
student loan
A debt that is used to finance education costs
wire transfer
The process of sending money electronically rather than using paper checks