prime borrower
121Mortgage Index — The benchmark interest rate an adjustable rate mortgage s fully indexed interest rate is based on. An adjustable rate mortgage s interest rate, known as the fully indexed interest rate, is comprised of an index value plus a margin. The margin… …
122Peer-To-Peer Lending (P2P) — A method of debt financing that enables individuals to borrow and lend money without the use of an official financial institution as an intermediary. Peer to peer lending removes the middleman from the process, but it also involves more time,… …
123Reference Rate — An interest rate benchmark upon which a floating rate security or interest rate swap is based. The reference rate will be a moving index such as LIBOR, the prime rate or the rate on benchmark U.S. Treasuries. Depending on the security or… …
124Subprime Credit Card — A type of credit card issued to people with substandard credit scores or limited credit histories. These cards will typically carry much higher interest rates than credit cards granted to prime borrowers; they also come with extra fees and lower… …
125Variable Interest Rate — An interest rate on a loan or security that fluctuates over time, because it is based on an underlying benchmark interest rate or index that changes periodically. The obvious advantage of a variable interest rate is that if the underlying… …
126bank — I (New American Roget s College Thesaurus) n. slope, hillside; mound, heap, ridge; tier; beach, shore, shoal; depository, vault. See obliquity, land, store. v. tilt, angle, slope; deposit. See edge, aviation. II (Roget s IV) n. 1. [A wall of… …
127prepayment risk — The risk associated with early payments of obligations. A prime example is the risk that a borrower will repay a fixed rate mortgage early at a time when interest rates are falling, leaving the lender with a lower interest income than anticipated …
128rate of interest — noun the percentage of a sum of money charged for its use • Syn: ↑interest rate • Hypernyms: ↑rate, ↑charge per unit • Hyponyms: ↑discount rate, ↑discount, ↑ …
