Loanfactz Definitions
Glossary of Legal Terms, Loan Terms and Home Construction, Repair and Maintenance Definitions. Some words have more than one meaning. Only those meanings relating to this site will be used.
All of F
Fixed Interest Rate
An * interest rate which does not change during the entire term of the loan, which makes your monthly payments, interest and * principal, stay the same. Generally have repayment terms of 15, 20, or 30 years.
Glossary For This Page
(In Alphabetical Order)
* Interest Rate
The percentage of a sum of money charged to the borrower (you) by the lender (a bank, or other financial institution) for borrowing the lender's money. Interest rates change because of the market conditions.
* Principal
Principal is the amount of money on the loan that has not yet been paid back (the amount you borrowed), not including the interest. Making principal payments are what will pay off the entire loan at maturity.
|