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