Unit 9 Vocabulary

Front

Loan

Back

A sum of money that is borrowed and is expected to be paid back with interest.

Front

Cosigner

Back

A person who agrees to take responsibility for a loan if the primary borrower fails to repay it.

Front

Lien

Back

A legal right or interest that a lender has in the borrower's property, granted until the debt obligation is satisfied.

Front

Collateral

Back

An asset that a borrower offers to a lender to secure a loan, which can be claimed by the lender if the loan is not repaid.

Front

Term

Back

The duration over which a loan must be repaid.

Front

Interest Rate

Back

The percentage of a loan charged as interest to the borrower, typically expressed as an annual percentage.

Front

Principal

Back

The original sum of money borrowed in a loan, or the amount still owed on which interest is calculated.

Front

Credit History

Back

A record of a borrower's responsible repayment of debts.

Front

Default

Back

Failure to repay a loan according to the agreed terms.

Front

Amortization

Back

The process of paying off a debt over time through regular payments.