Glossary of Loan Terminology.Acceleration: Repayment of responsibility this is certainly earlier than initially contracted for.
Accrued Interest: Interest that is made by the loan provider and payable because of the debtor. Every day interest percentage is calculated from the unpaid major balance and becomes вЂњaccrued interest.вЂќ
Amortization: The repayment that is gradual of financial obligation by periodic (usually monthly) installments of principal and interest.
Annual portion Rate (APR): the full total price of borrowing money expressed as a yearly price.
Assignment: The transfer associated with note to some other qualified lender. The borrowerвЂ™s duty and responsibilities try not to alter.
Capitalization: The addition of unpaid accrued interest put on the main stability of that loan which escalates the total financial obligation outstanding. (more…)