Below are definitions that will be helpful and make your banking experience with us as simple as possible.
Mortgage that allows for periodic adjustments of interest at specified points in time. Also referred to as an ARM.
Paying down a debt by making regular payments of principal and interest.
Table commonly used in mortgages and installment loans that shows the number of payments due, the amount due in each installment, the declining principal balance, and the number of years needed to fully repay the debt.
Cost of credit paid by a consumer, described as a percentage. Also referred to as APR.
APY - The percentage to be disclosed on interest-bearing deposit accounts that reflects the total interest to be earned, assuming funds remain in the account for a 365-day year.
Contract between a member and an insurance company to fulfill present and future income goals. The member invests a specified amount and, in return, receives regular payments either for life or for a stated period of time. Members do not pay taxes on the money until they start receiving payments. These types of investments are not federally insured.
1. Average amount of money in an account over a period of time. This average is calculated by adding the daily balances and then dividing by the total number of days in that period. 2. Method for computing interest or finance charges on accounts. The account balance at the close of business is divided by the number of days in the month, and the interest is applied to that amount.
Final lump-sum payment of a remaining loan balance, such as a mortgage, that is much larger than any previous payments.
Individual, institution, trustee, or estate that receives, or may become eligible to receive, benefits under a will, insurance policy, retirement plan, annuity, trust, or other contract.
Written promise to repay a debt issued by a company or a city, state, or federal government or agency that includes a promise to pay regular interest and to return the original amount borrowed on a specific date.
Loan taken against a line of credit or credit card.
Certificate issued by a financial institution acknowledging a deposit that earns interest for a fixed period of time. Not offered by Golden 1, but similar to a Term Share Certificate Account.
Borrower's out-of-pocket expenses involved in transferring real estate from a seller to a buyer. Typical closing costs include legal fees, surveys, title searches, and filing fees. Closing costs can also include prepaid items such as taxes and insurance escrow payments.
This form is a statement of final loan terms and closing costs. Compare this document with your Loan Estimate.
Personal property or money offered as a security against defaulting on a loan.
Process in which financial consultants work with individuals to determine the best investment plan to meet tuition costs.
Income that includes wages, salary, tips, commissions, bonuses, and alimony.
Interest earned on principal and previously earned interest.
Person designated to take over and protect the interests of an incompetent person.
Deposit into an IRA account.
Financial Services, formerly known as CO-OP Network, is an interbank network connecting the ATMs of credit unions in the United States, with locations also in Canada and certain United States Navy bases overseas. It is the largest credit union-owned interbank network in the US.
Written promise to pay.
Out-of-pocket expense payable on an insurance claim.
Document that transfers ownership of property.
Failure of a debtor to meet an obligation on a debt.
Service that electronically deposits a paycheck into a designated account.
Information relevant to a financial transaction, such as credit terms or other standard information required by state and federal governments.
Withdrawal of funds from an investment account such as an IRA or qualified retirement plan.
Distribution of earnings to members, equal to interest.
Vessel that has been certified by the Coast Guard for travel outside of U.S. waters.
Income resulting from wages, salary, tips, commissions, and bonuses. Can also include alimony.
IRA that lets members contribute up to $500 a year for each child under the age of 18. Funds from an Education IRA are used to pay for college expenses such as tuition, books, and room and board.
Federal Taxpayer Identification Number (TIN) for business entities, such as non profit organizations and employers.
Difference between the amount that a property could be sold for and the amount of money owed on it.
Federal agency that insures deposits in participating banks up to a certain amount. See National Credit Union Administration.
One of 12 banks located around the country that monitor financial institutions in their region. Federal Reserve Banks also provide money transfers and other services for financial institutions.
Person or company that manages money for a beneficiary.
Cost of credit, including interest, that is paid by a member for a loan.
A total of 3,500 member credit unions, 30 million cardholders, nearly 30,000 ATM locations, more than 5,000 shared branch locations and 160 million-plus monthly transactions make CO-OP Financial Services the nation's largest credit union service organization (CUSO).
Type of mortgage in which interest rates do not change, regardless of market conditions.
Additional car insurance that pays the difference between an insurance settlement and the balance of an auto loan in the event that the vehicle is declared a total loss after a theft or accident. Also known as Guaranteed Asset Protection.
1. For credit cards, no interest will be charged if new purchases are paid off within 25 days from close of billing cycle. 2. For loan payments, no late fee will be charged if payment is made within 15 days after due date.
Personal retirement account that allows a qualified member to set aside a portion of annual earned income.
A loan paid at regular times over a specified period.
Payment of benefits to the person insured under a policy.
Cost of using the credit union's money.
Percentage of interest paid on a loan.
Trust agreement with terms that cannot be changed.
Account owned by two or more people who equally share rights and liabilities of the account.
Arrangement in which a member may borrow any amount up to the credit limit for as long as the line of credit is open.
Ability of an asset to be converted into cash quickly.
A summary of the estimated loan terms, closing costs, projected monthly payments and other expenses associated with a mortgage.
Amount of money borrowed compared to the fair market value of the purchase or property. For example, assume you buy a car worth $10,000 MSRP. If your loan is for $8,000, then your loan-to-value ratio is 80% (because your loan of $8,000 is 80% of the car's total MSRP value.)
Insurance policy that will pay a person confined to a nursing home facility or receiving home care for an extended period of time.
Additional percentage rate over the prime rate charged as the cost of borrowing money.
Additional car insurance that a member can purchase to cover the cost of automobile breakdowns. Also known as Auto Mechanical Breakdown Insurance.
Mutual fund that invests in short-term money market instruments, such as certificates of deposit and treasury bills. Money Market Funds are not insured, whereas credit union Money Market Share Accounts are insured.
Price that a dealership asks for a new or used car. Also referred to as the manufacturer's suggested retail price.
Professionally managed investment that combines the resources of many investors to purchase stocks, bonds, and other investment products for the fund's portfolio. How the fund invests is determined by the fund's objectives, which can range from very conservative to very aggressive levels of risk. A member who buys shares in a mutual fund is part owner of a portfolio.
Independent federal agency that supervises the credit union system and insures member accounts through the National Share Insurance Fund (NSIF).
Organization that exists for educational or charitable purposes.
Fee charged by a lender to cover the cost of processing a loan application.
Automatic transfer of funds from a savings account (Regular Share, Money Market Share, Youth Share) or line of credit (Golden Line, Cash Reserve, Equity Entree, Gold MasterCard, Student VISA) to a checking account if there are insufficient funds to cover written checks.
Using money in an account to secure a loan.
Fee that is payable at the loan closing and is charged by a lender to increase profit on installment loans. One point is equal to 1% of the loan.
Fee paid by borrower if a loan is paid off in advance. It is intended to compensate the lender for loss of income in future years.
Rate determined by the Federal Reserve Bank and used by the credit union as a basis for setting loan interest rates.
1. Face value of a debt, not including interest owed. 2. Basic amount of money that's invested, not including interest or dividends earned.
Process in which the court appoints an executor or administrator to carry out the instructions of a will.
Related to member as spouse, child, grandchild, parent, brother or sister.
Highest interest rate to which a variable interest rate loan can rise.
The transfer of title to the borrower after a mortgage has been fully paid.
Process in which financial consultants work with members to determine the best investments to meet the members' retirement goals. Options such as mutual funds, annuities, and other specialized retirement plans are considered.
Trust whose terms can be changed or canceled at any time by the grantor.
1. Term Share Certificate Account that is renewed for another term at the current interest rate. 2. Tax-free reinvestment of a distribution from a qualified retirement plan into an IRA or other qualified plan within 60 days. 3. To extend the maturity of, or to renew, a loan or obligation.
Individual Retirement Account that allows account holders to withdraw funds after a five-year holding period without having to pay taxes. Contributions made to a Roth IRA are not deductible from account owners' taxable income.
Loan that is secured by the member's personal property or money.
Written promise to repay a debt issued by a corporation, government, or other organization, offered as an investment.
Shared Branching is a national network of credit unions across the country which share facilities to provide credit union members convenient locations to perform transactions when away from their local branch.
Loan granted to members based on credit history and application.
Interest calculation based on the amount of the original loan balance or investment.
Shares of ownership in a company that can be bought and sold.
Person designated to assume responsibility for managing a family or living trust if the primary trustee dies.
A fee users pay for the use of an ATM. The money goes to the owner of the machine, not Golden 1.
Used for tax reporting purposes. For most members, it's their Social Security Number.
Maximum amount you can place in an IRA account over the course of one tax year.
Investments that are not taxed until you withdraws the funds.
Investments whose earnings are not subject to taxes.
Length of time before a loan or deposit is due to be paid in full.
Deposit with a fixed rate of interest and a maturity date.
Relationship in which someone holds property for a beneficiary.
Person named to manage a trust for a beneficiary.
Person who establishes a trust for the benefit of another.
Act passed by Congress that requires lenders to explain all fees and charges related to loans. Also known as Regulation Z.
Loan that is not guaranteed by personal property or money and is based on the strength of the borrower's credit history and application.
Interest rate that changes based on the Prime Rate.
A mortgage company's request to verify member account information (i.e., open date, balances, and delinquent loans).
Profit received from an investment.
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Federally insured by the NCUA.