The person or organization to whom a check, draft, or note is made payable. See related question about Endorsing Checks.
person or entity that you legally designate to receive the benefits from your financial products.
Under the Equal Credit Opportunity Act (ECOA), an oral or written request for an extension of credit that is made in accordance with the procedures established by a creditor for the type of credit requested.
A party who agrees to be responsible for the payment of another party's debts should that party default.
The custodian of the account controls how money in it is invested and spent. The custodian must manage the account, can invest in most types of assets, and must use the funds in the beneficiary's best interest until the beneficiary reaches the age of majority – age 18, 21 or even 25, depending on the state.
The act of evaluating and setting the value of a specific piece of personal or real property.
The outstanding balance on a loan, excluding interest and fees.
The ratio of the loan principal (amount borrowed) to the appraised value (selling price). For example, on a $100,000 home, with a mortgage loan principal of $80,000, the loan-to-value ratio is 80 percent. The LTV will affect programs available to the borrower; generally, the lower the LTV, the more favorable the program terms offered by lenders.
A debt that was not paid when due.
A computerized facility used by member depository institutions to electronically combine, sort, and distribute inter-bank credits and debits. ACHs process electronic transfers of government securities and provided customer services, such as direct deposit of customers' salaries and government benefit payments (i.e., social security, welfare, and veterans' entitlements), and preauthorized transfers.
Writing a check in an amount that will overdraw the account but making up the deficiency by depositing another check on another bank. For example, mailing a check for the mortgage when your checking account has insufficient funds to cover the check, but counting on receiving and depositing your paycheck before the mortgage company presents the check for payment.
Legal claim against a property. Once the property is sold, the lien holder is then paid the amount that is owed.
The complete repayment of a loan, including principal, interest, and any other amounts due. Payoff occurs either over the full term of the loan or through prepayments.
A retirement savings program for individuals to which yearly tax-deductible contributions up to a specified limit can be made. The amount contributed is not taxed until withdrawn. Withdrawal is not permitted without penalty until the individual reaches age 59 1/2.