Glosario

Aqui puede encontrar algunos términos que le serán útiles.

Annual membership or maintenance fee:

An annual charge for having the line of credit available. Charged regardless of whether or not the line is used.

Annual percentage rate (APR):

The cost of credit on a yearly basis expressed as a percentage.

Application fee:

Fees that are paid upon application. May include charges for property appraisal and a credit report.

Balloon payment:

A lump-sum payment that may be required when the plan ends.

Cap:

A limit on how much the variable interest rate may increase during the life of the plan.

Closing Costs:

Fees paid at closing, including attorney fees, fees for preparing and filing a mortgage, fees for title search, taxes, and insurance.

Credit limit:

The maximum amount that may be borrowed under the home equity plan.

Equity:

The difference between the fair market value (appraised value) of the home and the outstanding mortgage balance.

Index:

Published rate that serves as a base for the interest rate charged on a home equity line and also as the base for rate changes used by the lender.

Interest rate:

The periodic charge, expressed as a percentage, for use of credit.

Margin:

The number of percentage points the lender adds to the index rate to determine the annual percentage rate.

Minimum payment:

The minimum amount that you must pay (usually monthly) on your account. Under some plans, the minimum payment may cover interest only; under others, it may include both principal and interest.

Points:

One point is equal to 1 percent of the amount of the credit line. Points must usually be paid at closing and are in addition to monthly interest.

Security interest:

An interest that a lender takes in the borrower's property to ensure repayment of a debt.

Transaction fee:

A fee charged each time you draw on your credit limit.

Variable rate:

An interest rate that changes periodically in relation to an index. Payments may increase or decrease accordingly.

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