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Annual
Percentage Rate (APR)
APR is the yearly rate of interest including
all miscellaneous costs. Must be disclosed
by lenders as per the law.
Cosigner
Another person who signs your loan and assumes
equal responsibility for it is known as a
cosigner. This usually comes into play when
the original person applying for the loan
does not have enough credit to take on the
responsibility themselves.
Default
Inability to repay a loan
Down Payment
Money paid to make up the difference between
the purchase price and the mortgage amount.
Refinancing
Provides new financing for an existing loan.
The existing loan is paid with the Proceeds
from the new loan. Typically the new loan
is at a lower rate, or has a longer term than
the previous loan.
Title
Title is a legal document that proves an individual's
ownership of the property.
Upside-down
When the value owed by the borrower on the
car loan exceeds the value of the car, the
phenomenon is known as upside down or negative
equity.
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