3.2 Loans

An agreement that states the conditions of a loan; a borrower’s signature confirms a promise to pay back the loan as outlined in the agreement.

• Principle

• Note

• promissory note

• cosigner

A person that signs a promissory note along with the borrower and agrees to pay back the loan if the borrower does not.

• cosigner

• signer

• life insurance

• Insurance

A type of insurance that pays a specified amount upon the policyholder’s death; a creditor often requires a borrower to take out life insurance to cover the loan in the event the borrower dies before the loan is paid.

• Policy

• prepayment penalty

• prepayment privilege

• Life Insurance

An agreement that allows a borrower to make payments before the due date to reduce the amount of interest.

• prepayment privilege

• Privilege

• prepayment

• Post payment

An amount borrowers sometimes must pay if they wish to pay back an entire loan before the due date.

• payday loan

• cosigner

• prepayment privilege

• prepayment penalty

Who are the four teachers who teach MDFL?

• Ms. Lopes

  Ms. Tant

  Ms. Chason

  Dr. Page

• Mrs. Bailey

  Ms. Tant

  Ms. Chason

  Dr. Page

• Mrs. McCormick

  Ms. Tant

  Ms. Lopes

  Dr. Page

• Ms. Chason

  Ms. Tant

  Ms. Lopes

A voluntary deduction from an employee’s paycheck, used to pay off debts.

• wage garnishment

• Assignment

• wage assignment

• Balloon Payment

An involuntary form of wage assignment, often done by court order.

• wage garnishment

• lending institution

• balloon payment

• wage assignment

• Cosigner

The last monthly payment on some loans that is much greater than the previous payments.

• Payday Loan

• Balloon

• Lending Institution

• Balloon Payment

Security, such as a personal belonging, car or boat title, CD, or stock certificates, that insures a loan will be repaid is what?