| Are you looking for an introduction to | | | | credit history. At this point, let me remind |
| finance lingo? Try going to get a loan. We | | | | you that you need to avoid getting a bad |
| realize terms like "Agreement in Principle" | | | | credit history as this will hamper you |
| and "Adjustable Rate Mortgages" to "Credit | | | | chances of getting loans later on. |
| History" and "Equity Release". Going shopping | | | | |
| for loans can be a very educational | | | | "Collateral" refers to the asset (usually |
| experience. If you have the idea that you | | | | property) that you use as security take |
| have a good command over the Queen's | | | | advantage of a secured loan. An unsecured |
| language, just try asking a mortgage salesman | | | | loan requires no such collateral. If you do |
| for loan advice. By the time you are done | | | | not own any real estate yet but are hoping to |
| with it, you might just come home feeling | | | | sometime soon, you will locate all kinds of |
| like the world of finance speaks in a | | | | mortgage terminology like "Adjustable Rate |
| language very different from yours. | | | | Mortgages". This is quite different from |
| | | | "Fixed Rate Mortgages" where the interest |
| However, it really is not all that difficult | | | | rate is fixed and it is not affected by |
| when you get down to the fundamentals. For | | | | market conditions. In an adjustable rate |
| instance, "Agreement in Principle" is nothing | | | | mortgage, the rate may vary in line with the |
| more than a convoluted way of talking about | | | | market conditions. These days, one can take |
| the agreement that is made between the lender | | | | advantage of mortgages that have a |
| and the borrower as regards the sum that will | | | | combination of fixed and adjustable rates. |
| be lent out. To a large extent, this amount | | | | |
| would be determined by aspects like your | | | | If you already own a house, but are paying |
| credit history, the collateral that you are | | | | mortgage on it, "Equity Release" could be |
| offering, and your current income among other | | | | right up your alley. Equity means the |
| things. | | | | difference between the value of your home and |
| | | | the mortgage amount that remains pending. |
| Are you already feeling a little shocked by | | | | Free this equity by availing of an equity |
| all this jargon? Let me just give you an | | | | loan to allow you to make use of the equity |
| introduction into the basics. Credit history | | | | of your home. |
| refers to whether or not you have repaid | | | | |
| loans that you had taken earlier. If you have | | | | Acquaint yourself with some financial lingo |
| been a defaulter on a previous loan, you have | | | | before you embark on you search for the ideal |
| a bad credit history. If you have not | | | | loan. This is definitely going to make life a |
| defaulted, you will be said to have a good | | | | whole lot easier! |