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 Glossary
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First Mortgage
 A mortgage that gives the holder of the mortgage (the mortgagee) first claim on any proceeds from the sale of the property.

Fixed Rate Mortgage
 A mortgage on which the interest rate does not change for a specified period, which may be for the entire term of the loan or a shorter period.

Guarantee
 A promise by one party to answer for the debt or default of another.

Guarantor
 A party who agrees to be held responsible for the payment of another party's debt.

Income Statement
 An analysis or statement of income and expenditure over a period of time, usually a year.

Interest
 A charge for the use of funds. Interest on a loan is what the lender charges the borrower for the use of the money lent.

Interest Only
 An arrangement, usually for a period of one to five years, whereby payments are made to cover the interest component only, and not the principal.

Interest Rates
 The annual rate of interest of a loan, expressed as a percentage per annum (sometimes referred to an "annual percentage rate").

Investment Property
 A property purchased to produce income by way of rent, rather than for personal occupation.

Joint Tenants
 The holding of land by two or more persons where there is a right of survivorship. For example, on the death of one joint owner, the land as a whole vests in the survivors and can only be disposed of by the will of the last surviving owner.


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Author : Stephane Fitch
Publ.Date : Tue, 24 Aug 2010 17:25:26 GMT

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