Equity is the difference between an asset's current market value (the amount it could be sold for) and any debt or claim against it. For example, if you own a home currently valued at $300,000 but still owe $200,000 on your mortgage, your equity in the home is $100,000.

Chex Systems is a company that provides account verification services to aid financial institutions in identifying applicants who may have a history of account abuse. All reported applicants remain in the system for seven years or until removed by a reporting institution.

APR, or annual percentage rate, is your interest rate stated as a yearly rate. An APR for a loan can include fees you may be charged, like origination fees. APR is important because it can give you a good idea of how much you'll pay to take out a loan and this helps comparison-shop for loans.

Annual Percentage Yield (APY) is the amount of interest you earn on an account in one year. APY is different than simple interest: while with simple interest the deposit earns the same amount every month, APY reflects compounding, which means that you earn interest on the money you put into the account and on the interest that you receive over time. APR, or annual percentage rate, is your interest rate stated as a yearly rate. An APR for a loan can include fees you may be charged, like origination fees. APR is important because it can give you a good idea of how much you'll pay to take out a loan and this helps comparison-shop for loans.

Amortization is the process of paying off debt by making monthly payments. The longer the amortization period of a loan, the lower the payments. In general terms, a portion of each payment is first applied to the current amount of interest owed and the remainder to the remaining principal. As the loan matures, less is required for interest and more is applied to the principal. Please note, if there are outstanding fees or escrow amounts, a portion of the payment would be applied to these before covering interest.