Page 83 - Book6E

Prepayment penalty: extra fees that may be due if you pay off the loan early by refinancing your loan or selling your home.
Prime Rate: is often used as the foundation for calculating fixed- and variable-rate mortgages and home equity loans.
Principal: the amount of money borrowed or the amount still owed on a loan.
Start Rate: the introductory interest rate the borrower pays for the first fixed-interest period.
Term: the length of time of the loan. The number of payments can vary; a 30-year term could have 30 payments or 360 payments.
Truth in Lending Act: this federal law requires that creditors give you complete and accurate information about credit costs and terms.
X/Y: ARMs are often referred to this way. X is the number of years the initial interest rate applies before the first adjustment happens and Y is the interval between adjustments.
Glossary 75