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When the time comes to take out a loan, whether it’s for a new car, first home, major repair, or just to have a little extra cash in your pocket—it is easy to feel like lenders have the upper hand. Before you even get to the loan, finance officers throw around terms like Principal, Loan-to-Value Ratio, Equity, APR, etc. leaving you feeling Upside-Down—which by the way is also a term to know!

Getting financing prepared for a big expenditure can often be a milestone that is marking an exciting time in your life. Finally having your very first non-hand-me-down car or closing on a condo in your dream neighborhood are both occasions to celebrate! Before the celebrations begin however, there is a lot of information that needs to be exchanged and agreed upon on the backend with lenders to secure the money you need. And in the event your need for cash fast isn’t as happy, understanding and being confident about terms of your loan is, unfortunately, not something you want to invest time in.

To save the headache, check out some commonly used loan terms that can help you get up to speed quickly so you can follow even a fast-talking used-car salesman. LEARN MORE