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ABA Routing Number
A unique 9-digit number used in the United States to identify a financial institution.
The routing number (ABA) for MCCU is: 291973454

ACH (Automated Clearing House)
A computer-based interchange for clearing deposits and payments electronically
 
Adjustable-Rate
An adjustable rate (also known as a variable rate), refers to any type of debt instrument, such as a loan, bond, mortgage, or credit, that does not have a fixed rate of interest over the life of the instrument.

Annual Percentage Yield (APY)

The amount of interest earned on a deposit account, taking into account the effect of compounding interest
 
Assets
Everything of value that is owned by a person or company
Amortization
The gradual reduction of debt that occurs as loan payments are applied to loan principal and interest at a rate that repays the loan principal by the end of the loan term. 
Annual Percentage Rate (APR)
The effective interest rate paid on a loan, expressed as an annual rate. APR measures the true cost of borrowing by including any fees or prepaid interest involved in obtaining a loan. For instance, if a borrower pays $500 in closing costs to obtain a $10,000 loan, the APR is higher than the simple interest rate because the borrower is repaying a $10,000 loan but only receiving net proceeds of $9,500. The federal Truth-in-Lending Act requires lenders to disclose the APR. 
Appraisal
An opinion rendered by a certified professional indicating an asset's market value, as of a specific date. 
 
Automatic Transfer
A standing banking arrangement whereby transfers from a customer's account are made on a regular, periodic basis without further instruction or action by the customer.
"B" 
Certificate of Deposit (CD) - referred to as a “Share Certificate” at a credit union.
A time deposit with a maturity date that usually pays higher interest rates than other types of deposit accounts; a penalty is imposed if the funds are withdrawn before the maturity date. Often referred to as a “Share Certificate” in the credit union world.
Closing Costs
All costs above and beyond the purchase price of a property or loan amount that accrue during the buying, selling and refinancing of real estate. These include loan origination fees, taxes and appraisal fees. Closing costs can often be rolled into the loan. Closing costs are all also common on home equity loans.
Cost Analysis
A means of evaluating multiple choices and identifying the low-cost alternative using financial principles. In some cases, a cost analysis is done as a "net cost analysis," which means that the benefits are also included in the analysis. 
 
Co-Signer
A person who signs a credit agreement and accepts responsibility for the repayment of a loan in addition to the primary applicant
 
Collateral
Anything a financial institution accepts as security for repayment of a loan
 
Consolidate
To combine all of your debt into one monthly payment, reducing the risk of missing a payment
 
Credit Limit
The maximum amount that can be spent from a line of credit or credit account
 
Credit Report
A credit file disclosure that provides you with all of the information in your credit file maintained by a consumer reporting company
 
Credit Score
A numerical score, provided by a credit reporting agency, that is used by a lender to help determine whether a person qualifies for a particular credit card, loan, or service
Debit
Money withdrawn from a holder’s bank account without the payment of interest

Deposit

Money placed in an account, creating a new balance
 
Direct Deposit
Money automatically deposited in an  account from an employer or other source
 
Distribution
A sum of money withdrawn from a fund (such as a retirement fund) and given to the beneficiary or holder of the fund
 
Dividend
Interest paid on deposit accounts
Depreciation
The annual reduction in the value of an asset attributed to normal wear and tear.
Down payment
Amount paid by the consumer in cash or trade-in value in order to obtain a loan to finance the remainder of the purchase price.
E-Statements
Account statements delivered to you via e-mail; paperless account statements
 
Financing
To raise or provide funds or capital for a tangible item
 
Fixed-Rate
A loan where the interest rate on the note remains the same through the term of the loan
Escrow
A process handled by a third-party, fiduciary agent that involves depositing and disbursing funds for buyer and seller in a neutral account. The escrow agent's role is to protect either side of a transaction from the other side's unauthorized use of funds and to ensure an arms-length transaction between buyer and seller.
Gap protection
Insurance that covers an amount owed due to early termination of a lease agreement. Early termination may occur when a car is stolen or seriously damaged in an accident. The auto insurer's payment may not be enough to pay off the lease balance and any early-termination penalties. GAP protection helps make up all or a portion of the deficit.  
Gross income
Total income, before taxes or deductions. Gross income is one of the factors lenders weigh when they review loan requests.  
A fixed- or variable-rate loan, collateralized by a mortgage lien, that allows the homeowner to borrow against equity in the home for funds to pay for repairs or other home improvements, refinance other debt, or use for other purposes. Unlike a home equity line of credit, home equity loan term and payment amounts are fixed.
Individual Retirement Account (IRA)
A type of self-directed investment account used for retirement savings that can have certain tax advantages. There are two main types of IRAs: Traditional and Roth.
Interest rate
The cost of borrowing money, or the rate of return earned on lending money, expressed as an annual rate. Interest rates can be calculated as simple, compounded or effective.  
Lien
A legal claim recorded against an asset (often a home or vehicle) by a creditor to collateralize a loan.  
A preliminary step in obtaining a loan. A loan application tells the lender how much the applicant wishes to borrow and how the loan proceeds will be used. It lists information like personal income and assets; describes work history; and authorizes the lender to receive a credit report to assist in making a lending decision.  
Loan-to-value ratio (LTV)
Loan-to-value ratio (LTV) is the loan amount divided by the value of the collateral that secures the loan. The collateral value is determined by either an appraisal or recent arms-length transaction. For instance, an $80,000 loan on a home that was recently appraised at $100,000 has an LTV of 80 percent.  
Lock-in
Also called a rate lock, a lock-in is a lender's commitment to make a loan at a pre-set interest rate for specified number of days. A rate lock protects borrowers against interest rate increases, and shifts the risk of changes in market interest rates to the lender.  
Maturity Date
The date on which a share certificate comes due
 
Member
An individual belonging to a credit union; part owner of a credit union
Member Number
At MCCU, this is the unique number that identifies you as a member of our credit union.
Money Market Account
A type of savings account. It typically has a higher interest rate. It also generally requires a larger minimum deposit amount, allows fewer withdrawals, and may include checks.
 
Nonsufficient Funds (NSF)
Nonsufficient or insufficient funds- a term that indicates a member’s account does not contain enough money to cover a check or payment.
Online Banking
A platform accessed through the MCCU website that allows you to view and manage your account through the Internet.
 
Overdraft/Overdrawn
An instance or state in which there is a negative balance in a bank account, as the result of there being insufficient funds to cover amounts posted through checks or payments.

Origination Fee
A fee charged by a lender to cover the costs of processing a loan.
 
Overdraft Protection
An arrangement through which funds are advanced to an account to cover transactions that would otherwise cause an overdraft or bounced payment, due to nonsufficient funds.
Phishing
An identity theft technique in which a fake email is made to appear that it is from a legitimate company to compel the recipient to reveal personal or account information. The email may request that the recipient update or verify information by clicking a link. NEVER respond to this type of email. ALWAYS contact MCCU if you receive a suspicious email or are a victim of this type of crime. MCCU does not send emails or text messages, or make unsolicited phone calls asking for your account number, debit or credit card number, or PIN.
 
Personal Identification Number (PIN)
A confidential four-digit code you use at ATMs or point-of-sale terminals to access your accounts, and at stores to make debit purchases.
Principal
Original amount of money invested or borrowed.
Rate changes  
Periodic resetting of the interest rate on a line of credit or fixed-rate loan. Often, the base rate is a widely used rate such as the prime rate-the rate the largest U.S. banks charge their best customers.
Refinance
The process of getting a new loan to pay off an existing loan. For example, a borrower may refinance a home mortgage to take advantage of a lower interest rate or to lower monthly payments by extending the length of their mortgage.
Revolving credit
A form of open-ended credit in which a borrower can draw down on the credit line for the amount of the limit, repay at least some of the loan, and then draw down on the line again up to the limit amount. In some cases, periodic minimum payments or cleanup periods-paying down the disbursed amount to zero-are required by the lender to ensure that the borrower has the financial capacity to repay the line.  
Savings rate
The percentage of gross income that is saved or invested.

Share
Account
A credit union industry term for a savings account. This is the account that must have a $5 minimum balance to own a share of MCCU, a requirement for membership.

Share Certificate - A credit union industry term for what is commonly known as a Certificate of Deposit with other financial institutions.  This is a time deposit with a maturity date that usually pays higher interest rates than other types of deposit accounts; a penalty is imposed if the funds are withdrawn before the maturity date

Share Draft
- A credit union industry term for a draft (check). A Share Draft account is a checking account.
Secured
Term used to denote that a loan is backed by some type of collateral to help minimize risk to the financial institution and ensure repayment.
Tax rates
The percentage of income paid in income taxes.
Tax savings
Also known as a tax shield, tax savings is the amount saved by making tax-deductible investments. An example is a home purchase, because deducting mortgage interest generates savings by reducing taxable income. 
Term
The length of time it takes for a deposit to mature or a loan to be paid off.
Title
A legally-binding document that discloses ownership of an asset and any liens or other claims filed against the asset. A title should be examined for any recorded liens, which "encumber" a title and make its transfer more difficult than that of an unencumbered title. An unencumbered title is also referred to as a "clean" title.  
 
Transfer
The movement of funds from one account to another.
Underwriting
A loan review process that begins with the acceptance of a loan application and ends with a decision to either approve or deny the loan request.  
 
Unsecured
Term used to denote that a loan is not backed by some type of collateral; usually referred to as a signature or personal loan.
Upfront costs
These include any fees and charges collected in advance, before a loan is funded.  
Upside-down
A situation in which the fair value of a home, auto, or other item is less than the principal balance of the loan.
 
 
 
Wire Transfer
Wire transfer is a method of electronic funds transfer from one person or institution (entity) to another.
 
Withdrawal
Money removed from a place of deposit or investment.
 
 
 

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