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Financial Terms Glossary

The best customer is a well-informed one. That’s why we put together some popular terms that will help you understand how using financing to pay over time works.

Amortization

Loan payments by equal periodic amounts calculated to pay off the debt at the end of a fixed period, including accrued interest on the outstanding balance.

Interest Rate is the price you pay on the balance you carry. Stated as an Annual Interest Rates typically in practice the implied daily rate is multiplied by the average daily balance for the number of days during the statement period.

Any individual who will assume responsibility on the loan, but who will not take a title interest in the property nor occupy the property.

Deferred interest is when interest payments are deferred on a loan during a specific period of time. You will not pay any interest as long as your entire balance on the loan is paid off before this period ends. If you do not pay off the loan balance before this period ends, then interest charges start accruing.
The difference between the purchase price and the loan amount. The borrower is responsible for providing the funds for the downpayment.

This is a fee based on the percentage charged on revolving credit accounts. Finance charges are calculated using the APR and the balance.

Fixed Monthly Payments are equal payments that will pay off the loan principal plus interest, in full, by the end of the loan term. 

The monthly salary amount before taxes, withholdings, and expenses.

The minimum dollar amount you must pay each month which should be sufficient when all payments are made on time to pay off your obligations in full by the end of the loan term. 

Any individual who will assume responsibility on the loan, but who will not take a title interest in the property nor occupy the property.

A Promotional Period is the amount of time that a promotion will apply to an outstanding loan. They are typically 6, 12, 18, or 24 month periods, during which time you will be eligible for an interest rate that is lower than your standard interest rate. 

An agreement to lend a specific amount to a borrower and to allow that amount to be borrowed again once it has been repaid. A credit card typically has a revolving credit line. The borrower shows the lender that they are responsible with loan repayment so that credit can continue to be offered. 

This is another one of those terms you should look out for. All Opsana’s terms are standard because we are not typically engaging in Promotional Rates and and other such schemes to lure borrowers into payments that are unclear to them. We started Opsana so we don’t have to tell you to run and hide from the big company everyone knows that is doing all kinds of disingenuous stuff to borrowers.

If you come across any terms not listed, let us know at info@opsana.com and we will add them to the glossary soon as we can.