ACT 3070 Lecture Notes - Lecture 10: Federal Perkins Loan, Home Equity Loan, Adjustable-Rate Mortgage
Document Summary
Mortgage with a rate that may go up or down. Interest rate that shows what a borrower is actually paying with all the costs of financing factored in. Assets that have been pledged against a loan repayment. A person, other than the original borrower who signs for a loan and assumes responsibility. Initial upfront portion of the total amount due on a purchase. Loan carries a lower interest rate and offers a longer grace period. Interest rate remains the same throughout the life of the loan. Allows the homeowner to borrow against the equity in the house. Auto coverage that covers damage to an individual"s car or damage caused to other people or their property. Borrowing as needed up to a certain amount of money. Date which a loan is completely paid off. Additional insurance used to cover things such as jewelry or heirlooms not covered by a normal policy. Has an asset pledged against it to ensure payment.
