Glossary

Debt

Debt is defined as an obligation to repay a sum of money. Debt can be secured by collateral, or unsecured. In real estate, debt is used to finance the purchase of property, and can be either fixed-rate or adjustable-rate. Fixed-rate debt has a set interest rate that does not change over time. Adjustable-rate debt has an interest rate that can fluctuate over time, depending on market conditions.

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