Loan Glossary Terms That you should know

  • Amortization: is the length of time which a payment is calculated over.
  • Balloon Payment: is the amount of money that will be due at the end of the Loan Term:
  • Borrower: is the entity that is borrowing the money.
  • Church Loan: is a loan taken out by a church, usually for the purpose of; purchasing, refinancing, renovating or construction of real estate. But it can be any loan to a church.
  • Construction Loan: is a type of loan used to finance the construction of a building.
  • Interest Rate: is the amount of interest charged by a lender when you borrow money.
  • Loan Term: is the length of time a loan is made before the balloon (if any) comes due.
  • Personal Guarantees: are not normally needed on our church loans but when they are, it means that someone is guaranteeing the performance of the loan, and if the Borrower is unable to make the required payment(s). Then the Guarantor will be required to the payment(s).
  • Purchase Loan: is a type of loan used to purchase a property.
  • Refinance Loan: is a type of loan used to refinance an existing loan.
  • Renovation Loan: is a type of loan used to renovate an existing property.