|
|
Houston Mortgage > Glossary >
Debt Management > U 1-10
|
|
Unsecured claim
A claim or debt for which a creditor holds no special assurance of payment, unlike a mortgage or lien; a debt for which credit was extended based solely upon the creditor''s assessment of the debtor''s future ability to pay.
Unsecured debt
Debt that is not guaranteed by the pledge of any collateral. Most credit cards are unsecured debt, which is a main reason why their interest rate is higher than other forms of lending, such as mortgages, which employ property as collateral.
Unsecured loan
An advance of money that is not secured by collateral.
Unsecured personal loan
rates are for a loan amount of $3,000 and a term of two years. All rates are fixed for the term of the loan (variable rate loans may be available). Rates listed do not include a discount for having loan payments automatically deducted by debiting another account (auto debit). "Fees and Conditions" note any additional rate reduction for such method of payment."Range" indicates the lowest rate to highest rate that may be offered by the institution for the loan. If a rate range is indicated: Without "avg" (average), the rate quoted represents the "stated rate" (the rate the lender says most consumers will get, based on their credit worthiness). With "avg", the rate shown is the arithmetical average of the range (the lender is not willing to quote a usual or "stated rate").
Upside-down
A position that consumers find themselves in when the outstanding balance of a loan is higher than the current fair market value of the property purchased with the loan. In automobiles, it is most common in the early years of a lease or loan, when the car is depreciating rapidly but the balance owed remains very high. Also see depreciation.
|
|
|
Houston Home Mortgage