| One-year adjustable
|
Mortgage whose
annual rate changes yearly. The rate is usually based on
movements of a published index plus a specified margin,
chosen by the lender. |
| Open Admissions |
When most or all students
that apply to a college are admitted. |
| Open-End Credit |
A line of credit that may
be used over and over again, including credit cards, overdraft
credit accounts, and home equity lines. |
| Open-End Lease |
A lease that may involve a
balloon payment based on the value of the property when
it is returned. |
| Origination |
The process whereby the lender,
or a servicing agent on behalf of the lender, handles the
initial application processing and disbursement of loan
proceeds. |
| Origination Fee |
Fee, payable by the borrower
and deducted from the principal of a loan prior to disbursement
to the borrower. For federally-backed loans, the origination
fee is paid to the federal government to offset the cost
of the interest subsidy to borrowers. For private loan programs,
the origination fee is generally paid to the originator
to cover the cost of administering and insuring the program.
|
| Overaward |
The amount of loan proceeds
that, when added to other student financial assistance,
exceeds the borrower's educational need. |
| Overdraft Checking |
A line of credit that allows
you to write checks or draw funds by means of an EFT card
for more than your actual balance, with an interest charge
on the overdraft. |
