Terms with Category Financial Banking

  • Amortization Bank,
    • Amortization refers to the process of gradually paying down the principal of a loan. Each payment toward the principal reduces your loan by that amount. This is different than an interest-only loan payment where the principal balance is never reduced. Amortization for a mortgage loan in Canada is normally 25 years, but can be as few as 5 years.
  • Amortization Period Bank,
    • The amount of time it will take to pay off a mortgage by making routine payments.
  • Amortization Schedule Bank,
    • A detailed table showing the amortization of a loan which includes the beginning principal amount, period payments, the interest portion of each payment, the principal reduction portion each payment, and the ending balance. The Canadian Equity Group has developed a mortgage rate calculator which will generate a perfect example of an amortization schedule.
  • Amortization Table Bank,
    • A mathematical formula used to calculate monthly mortgage payments based on the borrowed loan amount, the interest rate, and the loan term.
  • Amortization Term Bank,
    • The time required to amortize (repay) an entire mortgage loan.
  • Amortized Loan Bank,
    • A loan that is completely paid off, interest and principal, by a series of regular payments that are equal or nearly equal.
  • Amount Financed Bank,
    • The principal that is financed. It could include the cost of the purchase and other items rolled into the payments.
  • Angel Investors Bank,
    • Private individuals with capital to invest in business enterprises.
  • Annex Bank,
    • To add one thing onto another.
  • Annual Administrative Fee Bank,
    • An annual (yearly) fee charged for the administration of a service.
  • Annual Crediting Cap Bank,
    • The highest rate that can be credited to an equity-indexed annuity in a year.
  • Annual Fee Bank,
    • A bank charge for use of a credit card levied each year, which can range from $15 to $300, billed directly to the customer's monthly statement. Many credit cards come without an annual fee.
  • Annual Percentage Rate (APR) Bank, Very Important,
    • A yearly rate of interest that includes fees and costs paid to acquire the loan. Lenders are required by law to disclose the APR. The rate is calculated in a standard way, taking the average compound interest rate over the term of the loan, so borrowers can compare loans. In mortgages, it is the interest rate of a mortgage when taking into account the interest, mortgage insurance, and certain closing costs including points paid at closing. There is no APR in an automobile lease; instead, the cost of money is expressed as the money factor.
    A number used to compare costs associated with mortgage loans and other forms of financing.
  • Annual Percentage Yield (APY) Bank,
    • The percentage, required by Truth in Savings regulations, to be disclosed on interest-bearing deposit accounts that reflects the total interest to be earned based on an institution's compounding method, assuming funds remain in the account for a 365-day year.
  • Annuitant Bank,
    • An individual who owns or is the recipient of an annuity.
  • Annuitization Bank,
    • The process of turning a retirement plan or annuity into income in the form of periodic payments or a single lump sum.
  • Annuitization Options Bank,
    • The different income dispersal options available when annuitizing a retirement plan or annuity, such as the timeframe and list of beneficiaries.
  • Annuity Bank,
    • A regular periodic payment made by an insurance company to a policyholder for a specified period of time.
    • A financial instrument that disperses a number of payments over a set period of time.
  • Annuity in Advance Bank,
    • When payments are made at the start of a period as opposed to the end.
  • Annuity in Arrears Bank,
    • When payments are made at the end of a period as opposed to the start.
  • Annuity Ladder Bank,
    • A financial plan to purchase multiple annuities from different companies over a number of years in order to minimize interest rate risk and the risk of a total loss.
  • Application Fee Bank,
    • What the lender charges to process the document in which a prospective borrower details his or her financial situation to qualify for a loan.
  • Appreciation Bank,
    • An increase in the value of a property or item.
  • Approval Bank,
    • An assessment made by a lender of a borrower's ability to pay for a home and a confirmation of the amount the borrower may obtain.
  • Arbitration Bank,
    • A dispute-resolution method in which an impartial third party, agreed upon by all sides beforehand, makes a decision.
  • Asset Bank,
    • Anything of monetary value that is owned by a person. Assets include real property, personal property, and enforceable claims against others including bank accounts, stocks, mutual funds, and so on.
  • Asset Case Bank,
    • A bankruptcy proceeding where there are non-exempt assets that might be accessible to pay creditor's claims.
  • ATM Access Fee Bank,
    • Fee charged in addition to the individual account fees for an account holder to gain access to the ATM system. Can be monthly, weekly, or annual fee. See also "Automated Teller Machine."
  • ATM Alliance Bank,
    • An alliance between banks and/or credit unions that is designed to avoid or minimize surcharges for non-bank customers at ATM machines. Customers from one bank that belongs to the alliance can use surcharge-free ATMs at all alliance banks.
  • ATM Card Fee Bank,
    • This is not a debit card fee. It can be an annual or monthly fee charged on top of individual account fees to obtain an ATM card. The fee may also be charged per card or per account. For example, if an account is held jointly, the bank may charge for the second person to hold a card or it may charge one fee for all the cards on an account.
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