Loan and Mortgage Terms

Front

Installment Loan

Back

A lump sum of money that you borrow and repay in payments or installments over a period of time, usually months or years.

Front

Cosigner

Back

A person who guarantees the loan for the original borrower and is responsible for paying back the loan if the original borrower defaults.

Front

Automobile Loan

Back

Money borrowed to purchase an automobile.

Front

Lender

Back

A financial institution that lends money to consumers. Examples: auto dealers, commercial banks, credit unions.

Front

Secured Loan

Back

A loan that is backed up by something the lender can take if the borrower defaults.

Front

Mortgage

Back

A loan to purchase or maintain a home, land, or other types of real estate.

Front

Down Payment

Back

Amount of money being paid for the automobile/home at time of purchase.

Front

Principal Loan Amount

Back

The initial size of a loan upon which interest is calculated.

Front

Interest

Back

The cost of borrowing the principal amount.

Front

Collateral Assets

Back

An asset that is accepted for a guarantee for a loan.