Copy of `Superglossary - Loan`

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Superglossary - Loan
Category: Economy and Finance > Loans
Date & country: 16/12/2013, US
Words: 169


Accounts Receivable Financing
A loan gained by borrowing against receivables. Loans are paid down as receivables are collected.

Adjustable Rate Loan (ARL)
A loan with an interest rate that changes during the term of the loan. The payments generally increa

Adjustable Rate Mortgage (ARM)
A loan with an interest rate that changes during the term of the loan. The payments generally increa

Amortize
Payoff off a debt in installments which includes both principal and interest.

Amount Financed
A required Truth in Lending Act disclosure for consumer loans. It is calculated by starting with the

Annual Fee
The amount charged by the lender each year to cover the administrative costs of the loan.

Annual Percentage Rate (APR)
A required Truth in Lending Act disclosure for consumer loans. It is a calculation of the cost of cr

Application Fee
A fee charged by the lender or broker for the loan application.

Appraiser
A person typically hired by a lender to provide an appraisal.

Arbitration
A privately conducted trial to resolve a dispute. Arbitration can be binding (in which case there is

Assets
Anything of value. Any interest in real or personal property which can be appropriated for the payme

Bad Debt
A debt that is not collectible and is therefore worthless to the creditor.

Balance Sheet
Financial statement presenting measures of the assets, liabilities and owner's equity or net worth o

Balloon Payment
A scheduled payment due at the end of a loan term that is substantially greater than the regular mon

Borrower
A person who receives funds in the form of a loan with the obligation to repay the loan in full.

Bridge Loan
Short-term loan to provide temporary financing until more permanent financing is available.

Broker Agreement
A contract between a borrower and a mortgage broker. It describes what the broker will do for the bo

Broker Compensation Or Fee
The amount of money the broker will receive for finding a loan for a borrower. This may be an amount

Business Credit Card
An amount of money, which a business can borrow against at times it needs capital. Using a card acce

Business Plan
A document that describes an organization's current status and plans for several years into the futu

Capital
Broadly, all the money and other property of a corporation or other enterprise used in transacting i

Capital Markets
Those financial markets, including institutions and individuals, that exchange securities, especiall

Capitalization
Long-term debt, preferred stock and net worth. The loan capital of a community development loan fund

Cash Flow Financing
Short-term loan providing additional cash to cover cash shortfalls in anticipation of revenue, such

Cash-Out Refinancing Loan
A loan that refinances a prior mortgage and that provides additional cash to the borrower. Funds.

Closing Costs
A general term to describe the fees that a borrower will pay at closing. Sometimes called 'settlemen

Collateral
Assets pledged to secure the repayment of a loan.

Commercial Real Estate Loans
Similar to residential mortgages, but collateral is business property. Interest rates are usually fi

Commercial Term Loans
Loans made to businesses that can be either secured and unsecured. Usually made to mid-size and larg

Conforming Loans
Loans which conform to Fannie Mae guidelines.

Courier Fee
This is a fee that may be charged to send documents or payments by courier, messenger or overnight m

Covenant
An agreement or promise to do or not to do a particular thing; to enter into a formal agreement; a p

Credit Rating
A predictor of the ability to pay back a loan. The credit rating is a result of credit scoring

Credit Report
This is a report which is generated by a credit reporting agency (such as Trans Union, Experion or E

Credit Score
This is a number that is supposed to show the lender how likely you are to repay a loan--whether you

Credit Scoring
The evaluation system used by lending institutions to determine relative credit riskiness of a busin

Creditfyi
A web site for checking business credit reports

Current Asset
Assets that will normally be turned into cash within a year.

Current Liability
Liability that will normally be repaid within a year.

Current Ratio
Current assets divided by current liabilities -- a measure of liquidity. Generally, the higher the r

Debt
An amount owed for funds borrowed. The debt may be owed to an organization's own reserves, individua

Debt Financing
A loan with pre-agreed terms, including payback schedule and interest.

Debt Service
Amount of payment due regularly to meet a debt agreement; usually a monthly, quarterly or annual obl

Debt Service Reserve
Term used to refer to cash reserves set aside by a borrower, either by internal policy or lender cov

Deed Of Trust
In some states loans are secured by means of a document called a deed of trust, instead of a mortgag

Default
A failure to discharge a duty. The term is most often used to describe the occurrence of an event th

Delinquent
In a monetary context, something that has been made payable and is overdue and unpaid,

Document Preparation Fee
An amount of money that you may be charged for the preparation of mortgage loan documents. This char

Due Diligence
Refers to the task of carefully confirming all critical assumptions and facts presented by a borrowe

Dun and Bradstreet
Leading provider of business credit information.

Endowment Or Trust
A fund that contains assets whose use is restricted only to the income earned by these assets.

Equifax
One of three leading providers of personal credit information.

Equipment Leases
Leases allowing companies to purchase new equipment.

Equity
This is the dollar amount of your home that you really own. You can calculate your equity by taking

Equity Participation
An ownership position in an organization or venture taken through an investment. Returns on the inve

Experian
One of three leading providers of personal and business credit information.

Fees
This is money you pay or is charged to you up front to get a mortgage loan. You may pay fees in cash

Fico
Credit scores calculated by Fair Isaac Company are often referred to as FICO Normally an average of

Finance Charge
The finance charge is a disclosure that appears on the Truth in Lending Act Disclosure Statement. It

Finance Companies
These are companies that make loans which are generally at higher rates than are available from bank

Fixed Interest Rate
An interest rate that is the same throughout the life of a loan.

Fixed Rate Loan
A loan where the interest rate does not change during the term of the loan.

Flood Certification Fee
A fee charged to determine if the property lies in a flood zone and whether flood insurance is requi

Foreclosure
The legal procedure by which a lender holding a mortgage on your house forces a sale of your house t

Fully Amortizing
This describes a loan where the balance owed at the scheduled end of the loan is zero if all regular

Fund Balance
Net worth in a nonprofit organization; total assets minus total liabilities.

General Recourse
Rights to demand payment from the general assets of the debtor, without seniority in access to any s

Good Faith Estimate
This document lists the estimated fees you will have to pay to get the loan. It also identifies who

Government Recording Fees And Taxes
Fees and taxes required to be paid to the local government where your mortgage documents are filed.

Guaranteed Loan
A pledge to cover the payment of debt or to perform some obligation if the person liable fails to pe

Home Equity Loan
A loan made to a current homeowner that is secured by the equity in the home.

Homeowners Hazard Insurance
Homeowner's or Hazard Insurance is insurance required to protect the mortgage lender against possibl

Hud
The U.S. Department of Housing and Urban Development

Hud Special Information Booklet
This is a booklet published by HUD that describes important terms and provides information about the

Hud-1
Also called a 'Settlement Statement' of all costs and fees in your closing.

Indorsement
1. The act of signing one's name on the back of a check or a note, with or without further qualifica

Installment Note
A note which provides that payments of a certain sum or amount be paid in more than one payment on t

Installment Sale
Also known as an agreement of sale or a land contract. This is a method of reporting capital gains b

Institutional Lender
A lender which makes a substantial number of real estate loans, such as banks, savings and loan asso

Interest Rate
The amount charged by a lender for the money borrowed. It can be fixed or variable.

Interim Financing
Short-term loan to provide temporary financing until more permanent financing is available.

Intermediaries
Non- or for-profit institutions that have specialized lending capacities. They obtain capital in the

Introductory Rate
Some loans have a lower introductory interest rate, which is in effect for a limited time. At the en

Inventory Financing
Money borrowed on the basis of finished inventory. The loan is paid as inventory is sold.

Jumbo Loans
Loans which exceed the Fannie Mae guidelines for loan size and amount. Jumbo loans may have differen

Late Charge
A penalty you will have to pay if you do not make your loan payment on time. This usually is calcula

Lender
A company or person that makes mortgage loans, such as a mortgage banker, credit union, bank, or sav

Lender Paid Compensation To Broker
This is also called the Yield Spread Premium. Fee which the lender pays to the mortgage broker for o

Leverage
Using long-term debt to secure funds for an organization. In the social investment world, often refe

Lien
A claim (legal interest) against a home. Common types of liens include a mortgage, tax lien or judgm

Limited Liability
Limitation of shareholders' losses to the amount invested.

Limited Recourse
Rights only to specifically stipulated assets to satisfy an unpaid debt.

Line Of Credit
Also called an 'open line of credit' secured on your home. Often there are no closing costs involved

Linked Deposit
A deposit in an account with a financial institution to induce that institution's support for one or

Loan Agreement
A written contract between a lender and a borrower that sets out the rights and obligations of each

Loan Approval-Commitment
A lender's agreement to make a loan on particular terms, including interest rate, fees and charges.

Loan Consolidation
The combining of a number of loans into a single new loan. Consolidation typically extends your repa

Loan Term
Length of time until your loan is due and payable.

Long Term Debt
Financing used to purchase or improve assets such as plant, facilities, large equipment and real est

Loss Reserves
That portion of a fund's earnings or permanent capital designated by the board of directors as a res