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.
A written contract signed by the buyer and the seller of a house stating the terms and conditions under which the property will be sold.
A mortgage on property that has a lien position behind the first mortgage.
An organization that collects monthly mortgage principal and interest payments from home owners and manages escrow accounts for paying taxes and homeowners' insurance premiums. The servicer often services mortgages that have been purchased by an investor in the secondary mortgage market.
A mortgage granted to a borrower considered subprime, that is, a person with a less-than-perfect credit report. Subprime borrowers have either missed payments on a debt or have been late with payments. Lenders charge a higher interest rate to compensate for potential losses from customers who may run into trouble or default.
S & P no-load index fund
A mutual fund comprised of the stocks that make up the Standard & Poor's 500. Load refers to the sales fee.
Savings and Loan Association. A state or federally-chartered depository financial institution that was primarily a provider of home mortgages but since deregulation in the 1980’s to offer services similar to a commercial bank.
Standard and Poor's 500 index is a leading indicator of large cap U.S. equities made up of 500 stocks chosen by the S&P Index Committee. Stocks are chosen based on their representation of industries in the economy and liquidity. There is also an index for small-cap companies, the S&P 600, and an index of midcap companies, the S&P 400.
Safe & Sound rating
Bankrate's proprietary rating on a 1 (low) to 5 (high) scale reflecting the financial health of the institution relative to its peers based upon information filed with regulators.