Bankrate's financial glossary
Did you run across an unfamiliar term when applying for a mortgage, credit card
or auto loan? Find the meaning here, along with definitions of other financial words
and phrases, in Bankrate.com's financial glossary.
The total value of all assets, such as house, car, furniture and investments, minus all debts, such as mortgages and credit card bills.
No cash-out refinance
A home loan for a lower interest rate in an amount that does not exceed closing costs and the original mortgage’s outstanding principal.
A mortgage in which the applicant provides a minimum of information -- name, address, Social Security number (so credit reports can be pulled), and contact information for an employer, if there is one. The underwriter decides on the loan based on the applicant's credit history, the appraised value of the house and size of down payment.
A provision of a home loan that prohibits the transfer of the mortgage to another borrower without the lender’s permission.
Non-recurring closing costs
One-time fees paid at a real-estate settlement, including origination, appraisal, points, title insurance and credit report.
A legal acknowledgment of a debt and an implicit promise to repay.
Percentage a borrower pays for the use of money, usually expressed as an annual percentage, as specified on a promissory document.
Notice of default
A step in the foreclosure process in which the lender formally tells a court that the borrower is in arrears.
Liquid account, providing FDIC insurance to $100,000 per person ($250,000 on retirement accounts), that permits unlimited check-writing and typically pays interest.
Negotiable order of withdrawal (NOW) account
Liquid account, providing FDIC insurance to $100,000 per person ($250,000 on retirement accounts), that permits unlimited check-writing and typically pays interest. Also known as a NOW account.