學習專區

The total cost of borrowing, expressed as a percentage, whichincludes both the interest rate and certain fees associated with a loan or credit product.

refers to the professional process of estimating the value of a property. This valuation is typically performed by a qualified appraiser who is knowledgeable about local real estate markets, property characteristics, and valuation methods.

The measure that reflects the total yearly cost of borrowingmoney through a mortgage, personal loan or credit card. This is a more comprehensive figurethat is calculated by adding the interest rate, fees and loan term. However, the APR does notincludeall costs including late payment fees and some third-party costs.

refers to a state within the United States where an attorney is typically involved in the process of closing a real estate transaction, similar to ESCROW. This incudes drafting and reviewing contracts, conducting title searches, overseeing the closing process, and ensuring that all legal requirements are met.

The process of creating a plan for how to manage and allocate your income,expenses, and savings over a specific period, usually on a monthly basis.

Interest that is calculated not only on the initial principal amount but alsoon the accumulated interest from previous periods. It results in exponential growth of savings ordebt over time.

A numerical representation of an individual’s creditworthiness, based on theircredit history, payment behavior, and other financial factors. Lenders use credit scores to assessthe risk of lending money

A financial metric that compares an individual’s monthly debtpayments to their monthly income. It helps lenders assess a person’s ability to manageadditional debt.

Spreading investments across different asset classes (stocks, bonds, real estate)to reduce risk and potentially increase overall returns.

A savings fund set aside to cover unexpected expenses, such as medical billsor car repairs, without disrupting your regular budget or accumulating debt.

A neutral, third-party company between the buyer and seller. They act as anintermediary within all parties to ensure contract and legal transaction take place correctly.

A type of credit score widely used by lenders to assess credit risk. It’s calculatedbased on various credit-related factors.

The percentage charged or earned on a sum of money over a certain period. Forloans, it’s the cost of borrowing; for savings, it’s the return earned.

Allocating money into assets with the goal of generating potential returns overtime. Investments caninclude stocks, bonds, real estate, and mutual funds.

A personal retirement savings account that allows individuals to contribute a certain amount each year, with potential tax advantages depending on the type of IRA.

The gradual increase in the prices of goods and services over time, which decreases the purchasing power of money. It’s important to consider inflation when planning for the future.

The difference between an individual’s assets (such as cash, investments, and property) and liabilities (debts and financial obligations). It’s a measure of overall financial health.

When you’re buying a home, it’s important to tell your mortgage company how you plan to use it. This is called your “occupancy type,” and it affects your loan terms, interest rates, and even down payment requirements.

The initial amount of money invested or borrowed, excluding any interest or earnings that accrue over time.

An employer-sponsored retirement savings plan in theUnited States. Contributions are often matched by the employer, and funds grow tax-deferreduntil withdrawal during retirement. 403(b) is a retirement savings plan available to certainemployees in thenonprofit sector, such as employees of public schools, universities, hospitals,and charitable organizations.

An individual’s willingness and ability to withstand fluctuations in the value of investments. It’s influenced by factors such as age, financial goals, and comfort level with risk.

Being unbanked refers to households that lack any checking or savings account at a traditional banking institution.

Underbanked indicates households that, although they might have a bank account, still resort to nonbank financial products and services, such as check cashing services or payday lenders.