Exam 2 Notes Flashcards
Demand Deposit
A checking account
Credit Limit
A specified amount of spending, that a card customer should not approach
Credit Score
A numerical evaluation of a borrower’s past credit history
Cashier’s Check
A check drawn on the banks account
Loan Rollover
Process of paying off a loan by taking out another loan
MLS
Multiple Listing Service of properties for sale
Depreciation
The loss in value of an asset such as a car
Mortgage Points
Prepaid interest collected at closing to lower interest rate
Time Deposit
A savings account
Installment Loan
A loan that is repaid in a series of fixed, schedule payments
Loan Disclosure STAT
A document lenders are required to supply borrowers that states the finance charges and APR
HELOC
Home Equity Line of Credit
Capitalized Cost
The price of the vehicle at the beginning of a lease
APR
True rate of interest including other fees charged by the lender
Fixed-Rated Mortgage
Traditional mortgage with the interest rate is fixed
NOW Account
Negotiable Order of Withdrawal Account
Collateral
Item of value used to secure a loan
Credit Bureau
An organization that collects information about individual borrowers
Commercial Bank
Offers checking, savings account, and a full range of financial products
Credit Union
A non-profit, member-owned financial cooperative
Debit Card
A card used to make transactions from a checking account
Cash Management
Day-to-day decisions about cash and near-cash resources
Condominium
A type of ownership of an individual unit of a multiple unit building
Capacity
The ability of the borrower to service the loan in a timely fashion
