Loan Glossary

The date on which the final loan payment is due and the loan balance must be paid in full. For a 30-year mortgage taken out today, the maturity date is 30 years from now.

An advance against future credit card or debit card sales. Repaid automatically as a percentage of daily sales. Extremely expensive (factor rates of 1.2x–1.5x) — use only as a last resort.

A hybrid of debt and equity financing, often used in commercial real estate to fill the gap between senior debt and equity. Carries higher interest rates (10%–20%) and may convert to equity on default.

Insurance required on FHA loans regardless of down payment. Includes an upfront premium (1.75% of the loan amount) and annual premiums (0.55%–1.05% depending on loan terms) paid monthly.