Chapter 5 Vocabulary

Legal process to resolve unmanageable debt.

• Bankruptcy

• term loan

• revolving loan

• collateral

Loan paid off in equal installments over a defined time.

• Bankruptcy

• term loan

• revolving loan

• collateral

Loan that is open-ended, typically with a limit that can be repaid and borrowed from again. Credit cards are an example of revolving loans.

• Bankruptcy

• term loan

• revolving loan

• collateral

Something of value that provides security for a loan.

• Bankruptcy

• term loan

• revolving loan

• collateral

When a buyer is unable or unwilling to make loan payments.

• Default

• repossess

• London Interbank Offered Rate (LIBOR)

• mortgage broker

Lender who specializes in home or real estate loans.

• Default

• repossess

• London Interbank Offered Rate (LIBOR)

• mortgage broker

Interest rate benchmark that variable rate loans are often tied to.

• Default

• repossess

• London Interbank Offered Rate (LIBOR)

• mortgage broker

Act of the lender taking the collateral of a loan in default.

• Default

• repossess

• London Interbank Offered Rate (LIBOR)

• mortgage broker

Lender who specializes in home or real estate loans. Also known as a mortgage broker.

• mortgage lender

• peer-to-peer (P2P) lending

• Uniform Residential Loan Application

• co-signer

Process by which individuals loan money to other individuals, usually through a specific P2P lending website.

• mortgage lender

• peer-to-peer (P2P) lending

• Uniform Residential Loan Application

• co-signer