[roxette]

Hi,

I have enlisted all the major terminologies related to debt under alphabet I below -

Interest free: As the name suggests, there will be no interest rates charged for any financial transaction. But obviously there would be some terms and conditions.

Introductory interest rates: In order to give you an attractive deal many companies waive off or lower your introductory interest rates. However after a period of time these low rates might change and you might have to pay high rates like other companies charge you. The only positive side to it is that, you might be offered a low interest rate in your balance transfer and save some money in the interest which you are paying.

Impound Account: This is also known as an Escrow Account. The lender hold reins to this account where the borrower pays the monthly mortgage installments for overall annual expenditure. This may include the taxes and insurance. The lender passes over the money of this account when they have matured.

Initial Rate: The amount charged on a lender during the first phase of an ARM (Adjustable Rate Mortgage) loan.

Interest: The additional fee a lender charges on the original loan amount for allowing the borrower to use his funds for a given time period.

Interest Rate: The amount of money a lender charges a borrower for lending giving him the financial support. The rate is calculated by dividing the total amount of interest charged by the loan amount.

Interest Rate Cap: This is implemented to safeguard Consumer rights that, limit the amount of the interest rate on an ARM loan. This can however change in an adjustment within an interval or during the entire period of loan.

Interest Rate Disclosure: A complete evaluation of the terms and conditions applicable to the processing of a loan and also the description of the interest rate agreement.

Regards
Roxette