The Loan section of Financial Dictionary is one of the most important sections of the site, as many people use loans to buy virtually everything. Most people are familiar with popular loan types like, auto loan, line of credit, student loan, bridge loan, balloon loan, secured loan, personal loan, and mortgage loan. However there are many other important loan related terms that one needs to know. Examples of such terms are amortization, collateral, LTV (Loan to Value), loan term, down payment, loan maturity, loan principal, and prime rate to name a few.
Even though credit card debt has escalated worldwide, one can't deny that having a credit card is very convenient. You will need one to buy something online, book a vacation/flight or simply rent a car. Credit cards are considered revolving credit as available credit goes up and down depending on how much is being borrowed and repaid.
Because interest rates fluctuate, some borrowers consider refinancing. For example if the interest rates trend up, then people with adjustable rate mortgage, might consider contacting their creditor and locking in low interest rate for a few years. If rates are going down then a borrower with fixed-rate loan, might consider refinancing in order to save on interest costs.
People who have had financial difficulties might be interested in learning about bad credit loans, loan sharks, predatory lending, secured credit cards and of course the always controversial payday loans.
Our loan section also defines the following financial terms - loan officer, promissory note, term loan, negative amortization and unsecured loan.
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