Acceleration Clause
The acceleration clause allows a lender to increase the
rate at which the loan is paid off if the borrower defaults
on the loan. This can result in the lender asking that the
balance be paid in its entirety immediately.
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Accrue
To accrue is when interest is building up on a loan.
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Accrued Interest
Accrued interest is the interest that has built up on a
loan during a certain time frame.
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Acquisition Fee
An acquisition fee is charged by the leasing company and
can be included in your monthly payments.
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Addons
Addons are items or services that can be added on to the automobile
by the dealership. These items are usually overpriced and dealers
often refer to them as snake oil because it bites you.
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Adjusted Capitalized Cost
The adjusted capitalized cost is the amount of
the vehicle after any discounts or down payments.
This is the amount that will be financed. This is also
known as Net Capitalized Cost.
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Adverse Action
Adverse action is when the lender decides not to grant a
loan in the amount or by conditions that have been requested by the
borrower.
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Adverse Action Notice
An adverse action notice is the letter that is sent
to the applicant advising that the loan was not approved.
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Agreement of Sale
The agreement of sale is a contract signed by both the
buyer and the seller that has both parties information
along with the terms of the contract. This is also known '
as the sales or purchase agreement.
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Amortization
Amortization is gradually reducing the amount owed on a loan
by making regular payments on both the principal and interest.
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Amortize
Amortize is making payments on a loan regularly until the loan is
paid off within the set duration of the loan.
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Amount Financed
The amount financed is the amount of money that is borrowed
from the lender.
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