Did you run across an unfamiliar term when applying for a mortgage, credit card or auto loan? Find the meaning here, along with definitions of other financial words and phrases, in this financial glossary.
A machine readable card that allows you to access your HELOC account.
Adjustable Rate Mortgages (ARMs)
A mortgage with a rate of interest that may adjust based on various indexes, such as the Treasury Bill rate or the prime rate.
A fee imposed to cover the administrative portion of settling a loan.
One of many calculators on the Internet which measures how much home a person can afford.
A fee imposed by the real estate agent for providing the buyer with realty services.
The process of regular repayments at scheduled intervals to reduce the principle and repay interest as it is due.
An annual charge imposed by the lender for maintaining a loan.
Annual Percentage Rate (APR)
The cost of a loan expressed as a yearly rate, which includes the interest rate, points, broker fees, insurance, and any other related fees a borrower is required to pay.
Annual Percentage Yield (APY)
The rate of return on an investment for a one-year period, including the interest rate and the effect of compounding. Financial institutions are required to quote APYs so that consumers are able to properly gauge their options.
A fee charged by the lender to cover the cost of processing a loan request and checking the borrower’s credit.
A documented estimate of a property’s market value by a qualified appraiser.
The fee an appraiser charges to assess the property value of a home.