Debt-To-Income (DTI) Ratio is an important measure of risk that divides your total monthly debt payments by your monthly income. Lenders use it to determine how well you manage monthly…
Category: Glossary
Collateral is any item(s) of value (assets) designated as security to a lender when you take a secured loan. In the event that you’re unable to make payments, the lender…
An installment loan is a lump sum borrowed all at once and re-payed over a fixed period of time. Payments (known as installments) are typically monthly, but can vary depending on the…
Unsecured debt is a loan not secured by any assets or collateral and the creditor doesn’t typically come after the items you purchased if you’re unable to make your payment.…
Secured debt is a loan backed by assets (collateral), such as a home or car which “secures the loan” with an item that the lenders can take ownership of and…
Revolving credit (or a revolving line of credit) is a type of loan that gives you continuous access to funds, up to an approved limit. When you use a portion…
Cash surrender value (CSV) or cash value is the amount of money the policy holder will receive from the insurance company upon cancellation of a permanent life insurance policy (whole…
The face value of a life insurance policy is the death benefit. It’s the stated dollar amount that the beneficiaries will receive upon the insureds death.