Loan Glossary
Business / Loan Glossary
Equity Participation: An ownership position in an organization or venture taken through an investment. Returns on the investment are dependent on the profitability of the organization or venture.
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 or finance them (or a portion of them) as part of the loan. If you finance fees, your loa . . . View Full Definition
Fico: Credit scores calculated by Fair Isaac Company are often referred to as FICO Normally an average of credit scores taken by 3 national credit bureaus.
Finance Charge: The finance charge is a disclosure that appears on the Truth in Lending Act Disclosure Statement. It is intended to show the cost of your loan as a dollar amount. It includes (1) interest th . . . View Full Definition
Finance Companies: These are companies that make loans which are generally at higher rates than are available from banks or credit unions.
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 required.
Foreclosure: The legal procedure by which a lender holding a mortgage on your house forces a sale of your house to obtain repayment of your loan. Foreclosure proceedings are typically started by a lender . . . View Full Definition
Fully Amortizing: This describes a loan where the balance owed at the scheduled end of the loan is zero if all regular monthly payments are made as scheduled.
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 specific assets.
Good Faith Estimate: This document lists the estimated fees you will have to pay to get the loan. It also identifies who is expected to provide services and receive fees in connection with your loan, such as cre . . . View Full Definition
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 perform. When a third party guarantees a loan, it promises to pay in the event of a default . . . View Full Definition
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 possible damage to your home. It can also protect the borrower. A borrower must obtain this insur . . . View Full Definition
Word of the Day:
Bond: 1. A debt instrument, an obligation to pay, a security issued by a corporation. 2. A written promise that accopmpanies a mortgage and is evidence of t . . . Full Definition
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