Glossary

This section provides definitions and explanations for key financial and technical terms that you may encounter while using the API. Understanding these terms will help you effectively utilize the API and integrate it into your financial processes.

Financial Terms

Mortgage:

• A mortgage is a loan used to purchase real estate, where the property itself serves as collateral for the loan. The borrower agrees to repay the loan with interest over a set period, typically ranging from 15 to 30 years. Mortgages are commonly used for residential and commercial property purchases.

Residual Value:

• Residual value is the estimated value of an asset at the end of its lease or useful life. In the context of leasing, it represents the remaining value of the leased asset that the lessee can purchase or return at the end of the lease term. It is a key factor in calculating lease payments.

Effective Interest Rate (EIR):

• The effective interest rate (EIR) is the true annual interest rate that accounts for the effects of compounding over a given period. Unlike the nominal interest rate, the EIR provides a more accurate measure of the cost of borrowing by considering the frequency of compounding. It helps borrowers understand the actual cost of a loan.

Equity:

• Equity in the context of real estate refers to the difference between the market value of a property and the outstanding balance on the mortgage loan. It represents the portion of the property that the owner truly owns. Equity can increase through property value appreciation or mortgage principal repayment.

Principal:

• The principal is the initial amount of money borrowed in a loan or mortgage, excluding interest and fees. Over time, as the borrower makes payments, the principal decreases. The interest charged on a loan is typically calculated based on the remaining principal balance.

Amortization:

• Amortization refers to the process of gradually paying off a loan over time through regular payments. Each payment covers both interest and a portion of the principal. Amortization schedules detail how much of each payment goes toward interest and principal, and they help borrowers understand their repayment timeline.

Interest Rate:

• The interest rate is the percentage charged by a lender on the principal amount of a loan. It can be fixed or variable. A fixed interest rate remains the same throughout the loan term, while a variable interest rate can fluctuate based on market conditions.

Down Payment:

• A down payment is an upfront payment made by the borrower when purchasing a property or asset. It is usually expressed as a percentage of the total purchase price. A higher down payment can reduce the loan amount and may lead to more favorable loan terms.

Refinancing:

• Refinancing involves replacing an existing loan with a new one, typically to take advantage of lower interest rates, change the loan term, or access equity. Borrowers refinance to reduce monthly payments, pay off the loan faster, or obtain additional funds.

Balloon Payment:

• A balloon payment is a large, lump-sum payment due at the end of a loan term. Loans with balloon payments typically have lower monthly payments throughout the term but require the borrower to pay off the remaining balance in full at the end. Balloon payments are common in short-term and commercial loans.

Technical terms

API (Application Programming Interface):

• An API is a set of rules and protocols that allows different software applications to communicate with each other. The Partner Services API enables developers to interact with the financial system programmatically, performing operations such as creating applications, retrieving data, and managing statuses.

Endpoint:

• An endpoint is a specific URL path in an API that represents a unique function or resource. For example, GET /application/{id} is an endpoint for retrieving an application by its ID.

HTTP Status Code:

• HTTP status codes are standard response codes given by web servers to indicate the result of a client’s request. Common codes include 200 OK (success), 401 Unauthorized (authentication required), and 404 Not Found (resource not found).

JSON (JavaScript Object Notation):

• JSON is a lightweight data-interchange format that is easy to read and write. It is commonly used to transmit data between a server and a client in web applications, including APIs.

Authentication:

• Authentication is the process of verifying the identity of a user or application. In the context of the Partner Services API, authentication is typically done using an API key included in the request headers.

Rate Limiting:

• Rate limiting is a technique used to control the amount of incoming and outgoing traffic to or from a network. It ensures that APIs can handle a high volume of requests without becoming overwhelmed. Rate limits are usually defined as the number of allowed requests per minute or hour.

Throttle:

• Throttling is the act of limiting the number of API requests a client can make within a specified time period. It helps prevent abuse and ensures fair usage of the API resources.

Webhook:

• A webhook is a method used to deliver real-time data to other applications. When an event occurs in the system, a webhook sends an HTTP POST request to a specified URL with details about the event. Webhooks are often used to notify external systems of changes or updates.

By familiarizing yourself with these terms, you can better understand the Partner Services API documentation and effectively integrate its capabilities into your financial processes. If you have any additional questions, please refer to the other sections of the documentation or contact our support team.