Glossary
 
  Amortization
Amortization is the method of repaying a loan through small repayments occurring monthly or quarterly.

Appraisal
Appraisal is estimating the actual value of the property to determine the available equity.

Certificate of Title
Certificate of title certifies to it that the property that is offered for sale is marketable and insurable. This will need a written opinion by an attorney or certificate issued by a title company.

Collateral
An asset or property used as collateral can be repossessed by the lending authority to recover any unpaid amount on auto loan.

Cosigner
Cosigner accepts to indemnify the borrower for non payment of auto loan. In this regard he will pay the unpaid amount of auto loans.

Credit Bureau
Credit bureau maintains the record of all credit transactions done by a person. It is also referred to as credit reference agency.

Credit History
The credit record forms the credit file maintained by the credit bureau and the various instances that have been recorded in it. Depending on the credit file one will be classified as bad credit or good credit.

Default
Defaults are the arrears in payment of debts. These too can result into bad credit history.

Down Payment
Down payment is the certain percentage of the sum payable by borrower against the auto loans. Larger down payment will secure larger auto loan.

Interest
Interest is the cost of inflation to be paid by the borrower.

Interest Rate
An annual charge payable by the borrower and expressed in the form of percentage is known as interest rate.

Refinancing
A process whereby borrower pays off the original loan through a new loan at different terms is known as refinancing.

Term
Term is the period within which auto loan has been decided to be amortized.

 
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