Accrued Interest

Acceleration Clause

A loan term letting the lender demand full repayment immediately if you miss payments.

Adjustable-Rate Mortgage (ARM)

A home loan whose interest rate can change over time based on market rates.

Amortization

Paying off a loan over time with scheduled payments that cover both principal and interest.

APR (Annual Percentage Rate)

The yearly cost of borrowing money, including interest and fees, expressed as a percentage.

Balance Transfer

Moving credit card debt to another card, usually to get a lower promotional interest rate.

Balloon Payment

A large final payment at the end of a loan after smaller periodic payments.