Welcome!  •  August 24, 2017  •  6:34 AM EST
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Terminology: U

August 24, 2017 - 6:34 AM EST

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Terminology: U

Underwriting
The process of analyzing a borrower's capability to honor repayment of a loan (evaluating his or her credit, assets, employment) along with the value of the property being purchased, to help minimize the risk involved for the party lending the purchase money.
Unilateral contract
A one-sided contract in which only one party is legally under obligation by the terms of the contract; one party promises an action to the second party, who is not legally required to respond, but if the second part does comply, then the first party is obligated to honor the promise made.
Unsecured loan
A loan that is not guaranteed by collateral.
Usury
The act of charging more than the maximum rate of interest permitted by law.
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