Annual Fee - A charge for a loan or credit card, often presented as a membership fee and charged once a year.
Appraisal Fee - Cost to appraise a home to determine its market value.
APR - Annual Percentage Rate. This is the amount per $100 per year you will be paying for money you borrow. If you borrow $1000 for one year, you would pay $180.
Closing Costs - The amount it will cost you to get a loan, including appraisal fees, taxes and so forth.
Credit Insurance - Coverage in case you cannot make your payments due to unemployment, disability and so forth. May or may not be a good deal.
Daily Periodic Rate - The interest charged on a daily basis, calculated as 1/365 of the APR.
Finance Charge - A charge added to an amount owed, often in the form of interest, but may be an additional percentage.
Fixed rate - Interest rate that does not change over time unless you fail to pay or default on the loan.
Grace Period - The amount of time you have to pay on a loan before finance charges are incurred. Sometimes called a Free Period.
Line of Credit - An amount of money you can borrow from a given institution. You do not owe money on the line of credit; you owe money on the portion of it you actually borrow.
Mortgage Insurace - Protects broker from you defaulting on your home mortgage. Not always required.
Penalties - Fees added to your loan if you miss a payment, pay late, pay early or refinance.
Points - 1% of the loan amount. These are charged on most home loans. In many cases, higher points mean lower interest rates.
Secured Credit Card - Credit card you put a deposit down on, so that even if you miss a payment the credit card company will get its money.
Term of Loan - How long do you have to pay off the loan.
Title Search - Done to ensure that there are no liens against a property. You will generally pay a fee for this.
Transaction Fee - A fee charged per transaction. Most common for cash advances, ATM cards and so forth. May be charged by your bank or the bank you get the cash from, or both.
Variable rate - Interest rate that varies depending on another rate. Fairly common in home loans.
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