Glossary of Terms RV Financing - Boat financing, Boat loans, Yacht financing, RV loan, Recreational Vehicles financing, Loans, Tampa Bay, Florida, California

RV Glossary of Terms - Gulfcoast Funding

APR - Annual Percentage Rate

ARM Adjustable Rate Mortgage - Mortgage agreement between a financial institution and a recreational vehicle buyer stipulating pre-determined adjustments of the interest rate at a specified intervals

Amount Financed - This is the amount of credit provided by the bank on your behalf.

Credit Scoring - This is an objective methodology used by credit grantors to determine how much, if any, credit to grant to an applicant.

Down Payment - A down payment is the dollar amount required down for a new or used recreational vehicle.

Finance Charge - This is the cost of credit, including interest, paid by a customer for a recreational vehicle loan or a consumer loan.

Fixed Rate Loan - Type of loan in which the interest rate does not fluctuate with general market conditions.

Insurance Binder - The binder is an agreement executed by an insurer ( or sometimes an agent ) that puts insurance coverage into force before the contract is signed and the premium paid.

Interest - Cost of using money, expressed as a rate period of time, usually one year, in which case its called an APR.

LIBOR London Interbank Offered Rate - This is the interest rate offered by a specific group of London banks for U.S. dollar deposits of a stated maturity. LIBOR is used as a base index for setting rates of some adjustable rate financing instruments, including Adjustable Rate Mortgages. (ARM'S)

Loss Payee - The Bank who provides the financing for a loan must be named as loss payee on the insurance binder.

Montana LLC - A limited liablity company set up to title the vehicle, which may or may not afford the owner certain benefits. We have additional information on this as well as sources who will finance under a Montana LLC.

Points - Up front fee charged by a lender, separate from the interest rate but designed to increase the overall yield to the lender.

Prepayment Penalty - Fee paid by a borrower to a bank when a loan or mortgage that does not have a prepayment clause is repaid before its scheduled maturity.

Prime Rate - Base rate that banks use in pricing commercial loans to their best and most credit worthy customers.

Principal - The face value of an obligation that must be repaid at maturity separate form the interest.

Terms - Period of time which the conditions of a contract is carried out. Recreational vehicle loan terms are usually fifteen ( 15 ) or twenty ( 20 ) years.

Total Of Payments - The amount you will have paid after making all scheduled payments.

Variable Rate - This is the interest rate on a loan that rises and falls based on a movement of an underlying index of interest rates.