Essential Loan Glossary | You Should Know
- Amortization is the length of time which a payment is calculated over.
- Balloon Payment is the amount of money that will be due at the end of the Loan Term.
- Borrower is the entity that is borrowing the money.
- Church Loan is a loan taken out by church usually for the purpose of purchasing, refinancing, renovating or constructing real estate but it can be any loan to a church.
- Construction Loan is a type of loan used to finance the construction of a building.
- Interest rate is the amount of interest charged by a lender when you borrow money.
- Loan Term is the length of time a loan is made before the balloon (if any) comes due.
- Personal Guarantees are not normally needed on our church loans but when they are, it means that someone is guaranteeing the performance of the loan, and if the Borrower is unable to make the required payment, then the Guarantor will be required to make the payment.
- Purchase Loan is a type of loan used to purchase a property.
- Refinance Loan is a type of loan used to refinance an existing loan.
- Renovation Loan is a type of loan used to renovate an existing property.