What Are Payments?

Payments refer to the transfer of money or services by someone to fulfill his obligations to another party. In the personal finance area, payments refer to money given to creditors by the borrower to pay back loans such as credit cards, mortgages and student loans.

What Are Financial Goals?

Financial goals are the priorities and targets you set for how you want to spend and save your money. They aren't one size fits all, because everyone has different priorities. However, if you don't set your financial goals, you'll probably be left wondering where all your money went.

What Is a Credit Score?

Your credit score is a three-digit number that represents how well you've handled credit in the past and how likely you are to repay future debts. Your credit score is calculated from the information found in your credit report, which includes your trade lines -- your loans, credit cards and other debts, inquiries from when you've applied for credit in the past, and public records like bankruptcies and collections.

What Is a Line of Credit?

A line of credit is an amount of money that a lender offers to let you use when you need it, and that you will pay back over time with interest. But, you'll only pay interest on the amount of the line of credit you use.

What Is a Money Portfolio?

Money portfolio has two related meanings. It refers to your investment holdings -- how you spent your investment money -- and software to record, monitor and report your holdings. A money portfolio program should show you a complete picture of your investments, automatically receive and process updates, provide intuitive reporting through comparisons, charts and graphs, and offer information to help you optimize your investments. Quicken delivers extensive capabilities in all of these areas plus a good deal more.

What Is a Periodic Interest Rate?

The periodic interest rate means the interest rate over a specific period of time. The period rate helps you figure out how much interest accrues when interest compounds on a loan more than once per year. It also helps you figure out the interest when you take out a loan for less than a year, such as carrying a balance on your credit card.

What Is a Rollover IRA?

A rollover IRA refers to an individual retirement account that is set up to accept a transfer of money from an existing retirement account, such as a 401(k) or 403(b) plan. Sometimes, employer plans don't allow you to leave the money in the account after you've left the company, so a rollover gives you an option if you don't want to take an outright distribution.

What Is a Roth IRA?

A Roth individual retirement account is a special type of IRA that offers after-tax savings, rather than pretax savings like a traditional IRA. Because you forgo the tax break for contributions that you would receive from a contribution to a traditional IRA, Roth IRAs are especially attractive to people who are paying a lower income tax rate today than they anticipate paying when they take the money out at retirement, according to CNN Money.

What Is a Short Refinance

A short refinance is when your mortgage lender agrees to accept less money than you currently owe on your mortgage. This type of refinance can be done through your current lender or a completely different lender; the refinance pays off your current lender.

What Is A Short-Sale Home?

A short sale of a home is when a home sells for less than the amount needed to pay off the mortgage. In a short sale, the lender agrees to accept the lower sales price as payment in full for the remaining mortgage balance. For example, if someone owes $150,000 on mortgage and is falling behind on payments, the bank might agree to take $135,000 as payment for the mortgage.

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