From 11:00PM PDT on Friday, July 1 until 5:00AM PDT on Saturday, July 2, the Shmoop engineering elves will be making tweaks and improvements to the site. That means Shmoop will be unavailable for use during that time. Thanks for your patience!
We have changed our privacy policy. In addition, we use cookies on our website for various purposes. By continuing on our website, you consent to our use of cookies. You can learn about our practices by reading our privacy policy.
© 2016 Shmoop University, Inc. All rights reserved.

Finance Glossary

Just call us Bond. Amortized bond.

Over 700 finance terms, Shmooped to perfection.

Commitment Letter


So you need dough—but you don't need it today. You need it in 6 months when your cabin by the lake will be done and you convert your very expensive building loan into a normal mortgage. Well, you can go to the bank and, for a small(ish) fee, get a commitment letter which stipulates that, assuming that nothing material changes between now and then, you will in fact get a loan for $152,000 at 5% fixed interest for 30 years.