Learning Center

A mortgage whose interest rate changes after an initial fixed period, typically 3, 5, 7, o…

Each mortgage payment splits between interest and principal. Early payments are mostly int…

A complete table showing every payment over the life of a loan, with each row breaking dow…

The true yearly cost of borrowing, including interest plus all fees (origination fees, poi…

If $100 becomes $107 after a year, the annual return is 7%. Stock markets average ~10% nom…

You hand over a lump sum; they pay you monthly forever (or for a fixed period). Useful for…

A 6% APR on a credit card means you pay roughly 6% per year — but daily compounding makes…

APY accounts for compound interest — so a 5% APY actually returns 5% over the year, while…

A common rule: subtract your age from 110 to get your stock percentage. Younger investors…

Everything you own that has monetary value: cash, bank accounts, investments, retirement a…

Moving debt from one credit card (high APR) to another with a 0% promotional period, typic…

Average duration is ~9 months historically. They're scary but normal — the S&P 500 has had…

You lend $1,000 for 10 years at 4% — they pay you $40/year and return your $1,000 at the e…

Fixed-income investments representing a loan to a government or corporation. The borrower…

The number of months it takes for monthly savings from a lower rate to recoup the closing…

Bull markets last longer than bear markets on average — ~5 years vs 9 months. You can't pr…

Buy at $100, sell at $150 — that's a $50 capital gain. Long-term gains (held > 1 year) are…

Refinancing for more than your current mortgage balance and taking the difference as cash…

You commit money for a term (3 months to 5 years) and earn a guaranteed rate. Withdraw ear…

Fees paid at the end of a real estate transaction, typically 2–5% of the loan amount. Incl…

When your investment earns interest, that interest is added to your balance — so next peri…

The primary measure of inflation in the US, tracking price changes in a basket of consumer…

In the US, FICO scores range 300–850. Above 740 gets the best mortgage rates. Built mostly…

The percentage of your available credit you're currently using. Calculated per card and ac…

A debt payoff strategy where you make minimum payments on all debts and put all extra mone…

A debt payoff strategy where you make minimum payments on all debts and put all extra mone…

The decline in a vehicle's market value over time. Cars typically lose 15–25% of value in…

A life insurance needs calculation: Debt + Income (×years needed) + Mortgage balance + Edu…

If you own one stock and the company fails, you lose everything. If you own 500 stocks via…

Mature companies often share profits with shareholders directly. A 3% dividend yield means…

Instead of timing the market, you buy $500 of an ETF every month no matter what. When pric…

In the US, 20% avoids private mortgage insurance (PMI). Lower (3–5%) is allowed but adds m…

Your total monthly debt payments divided by gross monthly income. Lenders use two ratios…

A bond with 8-year duration drops ~8% if rates rise 1%. Longer-duration bonds pay more but…

Job loss, medical bills, car repair. Keep this in a high-yield savings account — accessibl…

Free money contributed to your 401(k) by your employer, typically matching 50–100% of your…

The portion of your home's value that you actually own: current market value minus outstan…

An account held by the lender to collect and pay property taxes and homeowner's insurance…

An ETF holds many stocks or bonds and trades on the stock market like a regular stock. Pop…

A 0.03% expense ratio costs you $3 per year on $10,000. A 1% ratio costs $100. Over 30 yea…

The rate banks charge each other overnight. The Fed adjusts it to control inflation: raise…

A mortgage backed by the Federal Housing Administration, allowing down payments as low as…

The math: when your investments × 4% can cover annual expenses, you're financially indepen…

The total investment portfolio value needed to retire and live indefinitely off withdrawal…

A mortgage with an interest rate that stays the same for the entire loan term — 10, 15, 20…

Guaranteed Asset Protection — covers the difference between what your car is worth (market…

A revolving line of credit secured by your home equity, working like a credit card with yo…

A savings account at an online bank offering significantly higher interest rates than trad…

An organization in some residential communities that enforces rules and collects fees for…

Also called the front-end DTI ratio — your total monthly housing costs (PITI) divided by g…

Contributions are tax-deductible, growth is tax-free, withdrawals for medical expenses are…

Instead of betting on individual stocks, you buy the whole market. Low fees, broad diversi…

If inflation is 3% per year, what costs $100 today costs $103 next year. Over 20 years at…

Set by banks and influenced by central banks. When rates rise, mortgages get expensive but…

A personal retirement savings account with tax advantages. Traditional IRA: contributions…

Everything you owe: mortgage balance, car loans, student loans, credit card debt, personal…

The tendency to increase spending as income rises, preventing wealth accumulation. Each ti…

A checking account is highly liquid; a house is not. More liquid usually means lower retur…

The ratio of your loan balance to the appraised property value, expressed as a percentage…

A single large payment made directly to principal, outside regular monthly payments. Maxim…

Apple at $200/share with 15B shares = $3T market cap. Categories: large-cap (>$10B), mid-c…

The smallest required monthly payment on a revolving debt (credit card) — typically 1–2% o…

The lease equivalent of an interest rate, expressed as a small decimal (e.g., 0.00125). Co…

Add up all assets (cash, investments, home) and subtract all debts (mortgage, credit cards…

A P/E of 20 means $20 of stock for every $1 of annual earnings. Historic S&P 500 average i…

Automating savings and investments the moment your paycheck arrives, before spending on an…

Once common, now rare in the private sector. Government and union jobs still offer them. D…

Acronym for Principal, Interest, Taxes, and Insurance — the four components of a full mont…

Insurance required by lenders when your down payment is less than 20% of the home's value…

Upfront fees paid to the lender to permanently reduce the interest rate. One point = 1% of…

Stocks, bonds, real estate, cash — added together they form your portfolio. The mix (asset…

A lender's written commitment to lend up to a specific amount, based on verified income, c…

A fee charged by some lenders when a borrower pays off a loan early or makes extra princip…

The original loan amount borrowed, or the remaining balance excluding interest. Extra paym…

$100 today buys more than $100 in 30 years. Your savings need to grow faster than inflatio…

If your investment grew 7% and inflation was 3%, your real return is 4%. This is the numbe…

If stocks rally, your 60/40 mix becomes 70/30. Rebalancing forces you to sell winners and…

Officially declared by economists after the fact. Common signs: rising unemployment, falli…

Replacing an existing mortgage with a new one — typically to get a lower rate, shorter ter…

REITs let you invest in real estate without buying property directly. By law they must pay…

The estimated market value of a leased vehicle at the end of the lease term, set by the ma…

Higher potential returns generally come with higher risk. Bonds are lower-risk than stocks…

Your ability and willingness to endure investment losses. Ability (financial): how much vo…

Best when you expect to be in a higher tax bracket later. Common forms: Roth IRA, Roth 401…

An IRA funded with after-tax dollars where qualified withdrawals in retirement are complet…

At 6% return, money doubles in ~12 years (72÷6). At 9%, in 8 years. It's a quick mental sh…

The percentage of a retirement portfolio you can withdraw annually without running out of…

The danger that poor investment returns early in retirement can permanently deplete a port…

If you put $1,000 at 5% simple interest, you earn $50 every year, forever. Most savings pr…

In the US, you can claim from age 62, but waiting until 70 increases monthly benefits ~24%…

When you buy a share of Apple, you own a tiny fraction of the company. You profit if the p…

401(k)s, IRAs, HSAs, and similar accounts in other countries (ISAs in UK, RRSPs in Canada)…

Life insurance covering a specific period (10, 20, 30 years). Pure protection — no savings…

US government bonds whose principal adjusts with CPI inflation, protecting against purchas…

Contributions reduce your taxable income today. You pay income tax when you withdraw later…

A mortgage benefit for eligible veterans, active-duty service members, and surviving spous…

Stocks are volatile — they can gain 20% one year, lose 15% the next. Bonds are less volati…

Permanent life insurance with a savings component (cash value) that grows at a guaranteed…

If a bond pays $40/year and costs $1,000, its yield is 4%. Bond yields and prices move opp…

Normally upward-sloping (longer = higher rates). When it inverts — short-term rates above…

A budgeting method where every dollar of income is assigned a specific purpose before the…