Unit 2 Financial Literacy Vocabulary Review

Front

an amount of money borrowed and repaid with interest

Back

Loan

Front

interest rate that states the same over the course of a loan

Back

Fixed Interest Rate

Front

Interest rate that can change over the course of a loan

Back

Variable Interest Rate

Front

Money is paid to the lender by the borrower for the use of the lenders money

Back

Interest

Front

the original borrowed amount

Back

Principal

Front

A home's market value less the outstanding mortgage balance

Back

Equity

Front

A schedule for repaying the loan

Back

Amortization Schedule

Front

A loan used to purchase a home

Back

Mortgage

Front

The amount of money a buyer pays in cash for the purchase of a home

Back

Down Payment

Front

fees paid in addition to the cost of a home

Back

Closing Cost