Loan vocabulary

Front

How can you find the best interest rate for a loan?

Back

Compare what different banks offer.

Front

Money that is borrowed is a _______________.

Back

Loan.

Front

What type of loan would you get if you were buying a car?

Back

Car loan.

Front

A _____________ signs a loan contract with a borrower and promises to pay back the loan if the borrower doesn't pay.

Back

Co-signer.

Front

The total amount you pay on a loan is equal to ________________.

Back

The principal plus the interest.

Front

What is the principal in a loan?

Back

The original amount of money borrowed.

Front

What is interest in the context of loans?

Back

The cost of borrowing money, usually expressed as a percentage of the principal.

Front

What is a mortgage?

Back

A type of loan specifically for purchasing real estate.

Front

What does it mean to co-sign a loan?

Back

To sign a loan agreement alongside the borrower, agreeing to pay back the loan if the borrower defaults.

Front

What is collateral?

Back

An asset that a borrower offers to a lender to secure a loan.