Credit Score? Definition, Factors, and Ways to Raise It
What Is a Credit Score? A credit score is a three-digit number that rates your creditworthiness. FICO scores range from 300 to 850. The higher the score, the more likely…
Collateral Definition, Its Types, & Examples
What Is Collateral? Collateral in the financial world is a valuable asset that a borrower pledges as security for a loan. For example, when a homebuyer obtains a mortgage, the…
Adjustable-Rate Mortgage (ARM): What It Is and Different Types
What Is an Adjustable-Rate Mortgage (ARM)? The term adjustable-rate mortgage (ARM) refers to a home loan with a variable interest rate. With an ARM, the initial interest rate is fixed…
What Is a Mortgage? Types, How They Work, and Examples
What Is a Mortgage? A mortgage is a type of loan used to purchase or maintain a home, land, or other types of real estate. The borrower agrees to pay…