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collateral source rule

the amount of damages to be paid to a plaintiff by a defendant will not be reduced by payments received by the plaintiff from other sources (as medical insurance)

buy down

down the seller pays an amount to the lender so the lender provides a lower rate and lower payments many times for an ARM. The seller may increase the sales price to cover the cost of the

bodily injury liability

applies when you are legally liable for injuring other people in an auto accident. Bodily injury liability provides payments to those injured individuals and pays your legal defense costs as well. Such coverage can be combined with

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back end ratio (debt ratio)

back end ratio (debt ratio) a ratio that compares the total of all monthly debt payments (mortgage, real estate taxes and insurance, car loans, and other consumer loans) to gross monthly income. Source: U.S.

arrear

of being due at the end of a term rather than the beginning usually used in pl. [mortgage payments are made in s] 2 : an unpaid and overdue debt usually used in pl. [paying off the

annuitant

annuitant : a person entitled to receive benefits or payments from an annuity

alimony

subject to change called also alimony in gross per·ma·nent alimony : alimony awarded after divorce which consists of payments at regular intervals that may change in amount or terminate (as upon the payee's remarriage) tem·po·rary alimony :

absolute priority rule

rule : a rule that provides for the satisfaction in full of claims of senior creditors before any payments can be made to junior creditors under a chapter 11 bankruptcy plan

a loan or a paper

paper a credit rating where the FICO score is 660 or above. There have been no late mortgage payments within a 12-month period. This is the best credit rating to have when entering into a new loan.

mortgage modification

allows a borrower to refinance and/or extend the term of the mortgage loan and thus reduce the monthly payments. Source: U.S. Department of Housing and Urban Development

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