Loan Glossary
Business / Loan Glossary
Promissory Note: Promise to pay. Written contract between a borrower and a lender that is signed by the borrower and provides evidence of the borrower's indebtedness to the lender.
Purchase Money Loan: A loan for the purpose of purchasing a home.
Rate Lock: Refers to the agreement between the borrower and the lender or broker that as long as the loan is closed within a certain period of time (for example, 30 or 60 days), the interest rate on th . . . View Full Definition
Receivables: Accounts receivable; an amount that is owed the business, usually by one of its customers as a result of the ordinary extension of credit,
Recording Fees: Fees charged by the local government to record loan documents (for example, the mortgage). These fees will be charged to the borrower and shown on the Settlement Statement (HUD-1).
Recourse: Refers to the right, in an agreement, to demand payment from the person who is taking on an obligation. A full recourse loan refers to the right of the lender to take any assets of the borro . . . View Full Definition
Recoverable Grants: Funds provided by a philanthropist to fulfill a role similar to equity. A recoverable grant may include an agreement to treat the investment as a grant if the enterprise is not successful, b . . . View Full Definition
Refinance: To repay one or more existing mortgage loans by getting a new mortgage loan.
Rescind: Literally means 'to take back' or 'cancel.' If a borrower rescinds a mortgage loan, it is as if the mortgage loan never existed. Some borrowers have by law a right to 'rescind' certain mortg . . . View Full Definition
Restructure: A revision of a financial agreement that alters the conditions or covenants of the original agreement. For example, parties may agree to restructure a loan agreement, easing the payment sche . . . View Full Definition
Revolving Credit: It is the same thing as a line of credit: an amount of money, which a business can borrow against at times it needs capital. Often accessed by check, ATM, or business card.
Right Of Rescission: Literally means 'to take back' or 'cancel.' If a borrower rescinds a mortgage loan, it is as if the mortgage loan never existed. Some borrowers have by law a right to 'rescind' certain mortg . . . View Full Definition
Roll Over: Prior to or at the time of the maturity of an investment or loan, the interested parties agree to continue to carry over the investment or loan for another, successive period of time.
Sba Loan: Loans to small businesses unable to secure financing on reasonable terms through normal lending channels. The program operates through private-sector lenders that provide loans, which are gu . . . View Full Definition
Secondary Mortgage Loan: A mortgage loan that is in addition to a mortgage that already exists on the home.
Secured Loan: A loan secured by specific collateral. Creditor may foreclose and seize the specific property that is collateral to satisfy an unpaid secure loan.
Security: A pledge made to secure the performance of a contract or the fulfillment of an obligation. Examples of securities include real estate, equipment stocks or a co-signer. Mortgages are a form o . . . View Full Definition
Senior Debt: Debt that must be repaid before subordinated debt receives any payment in the event of default.
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
Synonym of the Day:
Prize: Choice, Excellent, (prize)winning, Best, Champion, Outstanding, Select, Superior, Superlative, First-ratevalue, Treasure, Esteem, Cherish, Appreciate, . . . View All Synonyms
Game of the Day:
Hannah Montana Jigsaw 8
Do you think you can put all the pieces of this jigsaw puzzle together to form this picture of the teen sensation Hannah Montana? Play Game