We've organized the most common financial terms and explained them in simple, friendly ways.
Administered by the Federal Housing Authority, an FHA mortgage is intended for eligible moderate-to-low income borrowers, and does not deter applicants with lower credit scores. In addition, FHA mortgages typically require smaller down payments than conventional mortgages.
Created by the Fair Isaac Corporation (FICO), it is the original and most widely used credit scoring model in the industry. A credit score is a measurement of a person's creditworthiness based on their credit history and current debt obligations.
A limited (in coverage amount) life insurance policy intended just to pay for the deceased’s final expenses, including medical, funeral, and burial costs.
An interest rate that is predetermined and does not change over the life of a loan (e.g., mortgage, personal loan) repayment period.
For the majority of homebuyers, the most popular mortgage type comes with a fixed interest rate that does change over the life of the loan. The most popular fixed-rate mortgages come with either 15- or 30-year terms (i.e., the repayment period on the loan).