Basic Loan terminology
Basic Loan terminology
ANNUAL PERCENTAGE RATE
The Annual percentage rate is the amount of interest on your loan amount that the Borrower will pay annually averaged over the full term of the loan.
AMORTIZATION
Loan payments by equal periodic amounts calculated to pay off the debt at the end of a fixed period, including accrued interest on the outstanding balance.
ANNIVERSARY DATE
The date upon which the twelfth payment is due. This occurs in the same calendar month and day each year.
LOAN BALANCE
The outstanding unpaid amount of a loan. It can often be different than the payoff amount, which is the amount you would need to pay today to completely pay off your loan.
LOAN AGREEMENT
A legal contract between a lender and a borrower. The loan agreement details the obligations and responsibilities of the lender and the borrower. It includes all the details of the loan.
LENDER
In a Loan Agreement, the party that provides the funds (i.e. Nybyggnad Anslag Kapital AB).