A commonly used short-term interest rate in the US banking system. It’s the benchmark rate lenders use to set rates for their most credit-worthy customers. The best customers may be granted loans at rates below Prime.

A term in a mortgage agreement that requires the borrower to pay off the loan immediately under certain conditions.

Accounts receivable financing, also known as “factoring,” is a practice in which a business sells its invoices to a third-party financial company to collect upon.

The amount of mortgage interest that has been earned but not yet paid.

A mortgage with an interest rate that can change during the term of the loan. The timing and calculation of adjustments (also called resets) are determined by the loan program, and these details are disclosed in the mortgage documents.

The time between interest rate adjustments of an adjustable rate mortgage (ARM).

Amortization is the gradual reduction of a debt by regular scheduled payments of interest and principal.

If your current car is not paid off, the dealership will look at the amount you currently owe on the car.

A credit card issuer may charge you a fee each year for your account.

This is the combined annual income for you and your co-borrower.