Beneficiary: the person who will receive the insurance money
Insurer: the company providing the insurance
Policy: a written contract or certificate of insurance
Premium: how much you pay for an insurance policy (monthly, semi-annually, or annually)
Amortization period: the length of time in years that you will need to pay off a mortgage
Equity: the portion of the value of your property that you own
Interest: the cost of borrowing money
Principal: the amount you initially borrow
Unpaid balance: the portion of the balue of your property owed to the financial institution
Closed mortgage: a mortgage which does not allow payments on the principal
Fixed-rate mortage: a mortgage with the interest rate locked in for a specified period of time
Open mortgage: a mortgage that allows additional payments on the principal
Variable-rate mortgage: a mortgage where the interest rate may change from month to month
Gross debt service ratio: a formula used by most financial institution to determine whether or not you can afford the property you have selected
Metro: with reference to homeowner's insurance, this means a location within city limits
Protected: with reference to homeowner's insurance, this means a location within 300 metres of a fire hydrant
Semi-protected: with reference to homeowner's insurance, this means a location within 8 km of a firehall
Unprotected: with reference to homeowner's insurance, this means a location more than 8 km from a firehall
Thursday, February 4, 2010
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