Another New Ine Flashcards
Annual percentage rate
The interest rate payed per year or changed per year
Promissory note
An agreement which states the conditions of a loan a borrowers signature promises that the loan will be payed back
Consigner
A person that signs a promissory note along with the borrower
Collateral
Security, such as a personal belonging, boat title etc, that ensures a loan will be paid
Wage garnishment
An involuntary form of wage assignment, done by court order
Balloon payment
The last monthly payment on a loan that are higher than previous payments
Prepayment penalty
An amount borrowers pay if they choose to pay a loan back earlier thN the due date
Lending institutions
Organizations that extend loans, they make money by charging interest, include banks and credit unions
