Glossary
Definitions of financial and technical terms used across our tools
20 terms found
A
Amortization
The process of spreading loan payments over time, with each payment covering both principal and interest. Early payments are mostly interest; later payments are mostly principal.
Annual Percentage Rate (APR)
The yearly cost of borrowing, including interest and fees, expressed as a percentage. APR allows comparison between different loan offers.
B
Base64
An encoding scheme that converts binary data into ASCII text using 64 characters (A-Z, a-z, 0-9, +, /). Commonly used for transmitting data over text-based protocols.
C
Compound Interest
Interest calculated on both the initial principal and accumulated interest from previous periods. The more frequently interest compounds, the faster your money grows.
D
Down Payment
An upfront payment made when purchasing an asset, typically expressed as a percentage of the total price. Higher down payments usually result in lower monthly payments and better loan terms.
E
Encryption
The process of converting data into a coded format to prevent unauthorized access. Only those with the decryption key can read the original data.
F
Fixed-Rate Mortgage
A mortgage with an interest rate that remains constant throughout the loan term, providing predictable monthly payments regardless of market conditions.
G
GUID/UUID
Globally Unique Identifier / Universally Unique Identifier. A 128-bit number used to uniquely identify information in computer systems, typically displayed as 32 hexadecimal digits.
H
Hash Function
A mathematical function that converts input data into a fixed-size string of characters. Used for data integrity verification and password storage. Common algorithms include SHA-256 and MD5.
Hexadecimal
A base-16 number system using digits 0-9 and letters A-F. Commonly used in computing to represent binary data in a more human-readable format.
I
Interest Rate
The percentage charged by a lender for borrowing money, or earned by an investor on deposits. Usually expressed as an annual percentage.
L
Loan-to-Value Ratio (LTV)
The ratio of a loan amount to the value of the asset being purchased. A lower LTV indicates more equity and typically results in better loan terms.
M
Mortgage Insurance
Insurance that protects the lender if the borrower defaults on the loan. Often required when the down payment is less than 20% of the property value.
P
Principal
The original amount borrowed or invested, excluding interest or earnings. Monthly loan payments reduce the principal over time.
Q
QR Code
Quick Response Code. A two-dimensional barcode that stores information readable by cameras and smartphones. Can encode URLs, text, contact information, and more.
R
Return on Investment (ROI)
A measure of profitability calculated by dividing net profit by the initial investment cost, expressed as a percentage.
S
SHA-256
Secure Hash Algorithm 256-bit. A cryptographic hash function that produces a 256-bit (32-byte) hash value, commonly used for data integrity and digital signatures.
T
Term
The length of time over which a loan is repaid, typically expressed in years or months. Longer terms mean lower monthly payments but more total interest paid.
U
UTF-8
Unicode Transformation Format 8-bit. A variable-width character encoding capable of representing any character in the Unicode standard, backward compatible with ASCII.
V
Variable-Rate Mortgage
A mortgage with an interest rate that can change over time based on market conditions. May offer lower initial rates but carries the risk of rate increases.