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Fixed Rate Mortgage
A fixed-rate mortgage (FRM) is a mortgage loan where the interest rate on the note remains the same through the term of the loan, as opposed to loans where the interest rate may adjust or "float". As a result, payment amounts and the duration of the loan are fixed and the person who is responsible for paying back the loan benefits from a consistent, single payment and the ability to plan a budget based on this fixed cost. Other forms of mortgage loans include interest only mortgage, graduated payment mortgage, variable rate mortgage (including adjustable-rate mortgages and tracker mortgages), negative amortization mortgage, and balloon payment mortgage. Unlike many other loan types, FRM interest payments and loan duration is fixed from beginning to end. Fixed-rate mortgages are characterized by amount of loan, interest rate, compounding frequency, and duration. With these values, the monthly repayments can be calculated. Fixed-rate mortgages are vulnerable to inflation risk, ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Mortgage Loan
A mortgage loan or simply mortgage (), in civil law jurisdicions known also as a hypothec loan, is a loan used either by purchasers of real property to raise funds to buy real estate, or by existing property owners to raise funds for any purpose while putting a lien on the property being mortgaged. The loan is " secured" on the borrower's property through a process known as mortgage origination. This means that a legal mechanism is put into place which allows the lender to take possession and sell the secured property (" foreclosure" or " repossession") to pay off the loan in the event the borrower defaults on the loan or otherwise fails to abide by its terms. The word ''mortgage'' is derived from a Law French term used in Britain in the Middle Ages meaning "death pledge" and refers to the pledge ending (dying) when either the obligation is fulfilled or the property is taken through foreclosure. A mortgage can also be described as "a borrower giving consideration in th ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Building Society
A building society is a financial institution owned by its members as a mutual organization. Building societies offer banking and related financial services, especially savings and mortgage lending. Building societies exist in the United Kingdom, Australia and New Zealand, and used to exist in Ireland and several Commonwealth countries. They are similar to credit unions in organisation, though few enforce a common bond. However, rather than promoting thrift and offering unsecured and business loans, the purpose of a building society is to provide home mortgages to members. Borrowers and depositors are society members, setting policy and appointing directors on a one-member, one-vote basis. Building societies often provide other retail banking services, such as current accounts, credit cards and personal loans. The term "building society" first arose in the 19th century in Great Britain from cooperative savings groups. In the United Kingdom, building societies actively com ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Singapore Swap Offer Rate (SOR)
Singapore Dollar Swap Offer Rate (SOR) is an implied interest rate, determined by examining the spot and forward foreign exchange rate between the US dollar (USD) and Singapore dollar (SGD) and the appropriate US dollar interest rate for the term of the forward. It reflects the cost of borrowing SGD synthetically by borrowing USD and subsequently "swapping" to SGD by using an FX Swap. It is an alternative to Singapore Interbank Offered Rate (SIBOR) which is a measure of the interbank money market rates. As of December 2018, SOR is measured and published periods of overnight, 1 month, 3 month, and 6 month. Like SIBOR, SOR is set by the Association of Banks in Singapore, and is also publicly available. Below are the rates for 5 December 2018 published bABS Co. Residential property loans in Singapore are no longer pegged to SOR as banks have withdrawn them in 2017. SOR-pegged mortgages in recent years are not as popular as SIBOR SIBOR stands for Singapore Interbank Offe ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Adjustable-rate Mortgage
A variable-rate mortgage, adjustable-rate mortgage (ARM), or tracker mortgage is a mortgage loan with the interest rate on the note periodically adjusted based on an index which reflects the cost to the lender of borrowing on the credit markets.Wiedemer, John P, ''Real Estate Finance, 8th Edition'', pp 99–105 The loan may be offered at the lender's standard variable rate/base rate. There may be a direct and legally defined link to the underlying index, but where the lender offers no specific link to the underlying market or index, the rate can be changed at the lender's discretion. The term "variable-rate mortgage" is most common outside the United States, whilst in the United States, "adjustable-rate mortgage" is most common, and implies a mortgage regulated by the Federal government, with caps on charges. In many countries, adjustable rate mortgages are the norm, and in such places, may simply be referred to as mortgages. Among the most common indices are the rates on 1-year ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Geometric Progression
In mathematics, a geometric progression, also known as a geometric sequence, is a sequence of non-zero numbers where each term after the first is found by multiplying the previous one by a fixed, non-zero number called the ''common ratio''. For example, the sequence 2, 6, 18, 54, ... is a geometric progression with common ratio 3. Similarly 10, 5, 2.5, 1.25, ... is a geometric sequence with common ratio 1/2. Examples of a geometric sequence are powers ''r''''k'' of a fixed non-zero number ''r'', such as 2''k'' and 3''k''. The general form of a geometric sequence is :a,\ ar,\ ar^2,\ ar^3,\ ar^4,\ \ldots where ''r'' ≠ 0 is the common ratio and ''a'' ≠ 0 is a scale factor, equal to the sequence's start value. The sum of a geometric progression terms is called a '' geometric series''. Elementary properties The ''n''-th term of a geometric sequence with initial value ''a'' = ''a''1 and common ratio ''r'' is given by :a_n = a\,r^, and in general :a_n = a_m\,r^. Such a geometri ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Microsoft Excel
Microsoft Excel is a spreadsheet developed by Microsoft for Microsoft Windows, Windows, macOS, Android (operating system), Android and iOS. It features calculation or computation capabilities, graphing tools, pivot tables, and a macro (computer science), macro programming language called Visual Basic for Applications (VBA). Excel forms part of the Microsoft Office suite of software. Features Basic operation Microsoft Excel has the basic features of all spreadsheets, using a grid of ''cells'' arranged in numbered ''rows'' and letter-named ''columns'' to organize data manipulations like arithmetic operations. It has a battery of supplied functions to answer statistical, engineering, and financial needs. In addition, it can display data as line graphs, histograms and charts, and with a very limited three-dimensional graphical display. It allows sectioning of data to view its dependencies on various factors for different perspectives (using ''pivot tables'' and the ''sce ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Spreadsheet
A spreadsheet is a computer application for computation, organization, analysis and storage of data in tabular form. Spreadsheets were developed as computerized analogs of paper accounting worksheets. The program operates on data entered in cells of a table. Each cell may contain either numeric or text data, or the results of formulas that automatically calculate and display a value based on the contents of other cells. The term ''spreadsheet'' may also refer to one such electronic document. Spreadsheet users can adjust any stored value and observe the effects on calculated values. This makes the spreadsheet useful for "what-if" analysis since many cases can be rapidly investigated without manual recalculation. Modern spreadsheet software can have multiple interacting sheets and can display data either as text and numerals or in graphical form. Besides performing basic arithmetic and mathematical functions, modern spreadsheets provide built-in functions for common financ ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Annuity (finance Theory)
In investment, an annuity is a series of payments made at equal intervals.Kellison, Stephen G. (1970). ''The Theory of Interest''. Homewood, Illinois: Richard D. Irwin, Inc. p. 45 Examples of annuities are regular deposits to a savings account, monthly home mortgage payments, monthly insurance payments and pension payments. Annuities can be classified by the frequency of payment dates. The payments (deposits) may be made weekly, monthly, quarterly, yearly, or at any other regular interval of time. Annuities may be calculated by mathematical functions known as "annuity functions". An annuity which provides for payments for the remainder of a person's lifetime is a life annuity. Types Annuities may be classified in several ways. Timing of payments Payments of an ''annuity-immediate'' are made at the end of payment periods, so that interest accrues between the issue of the annuity and the first payment. Payments of an ''annuity-due'' are made at the beginning of payment period ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Nominal Interest Rate
In finance and economics, the nominal interest rate or nominal rate of interest is the rate of interest stated on a loan or investment, without any adjustments or fees. Examples of adjustments or fees # An adjustment for inflation(in contrast with the real interest rate) # Compound interest (also referred to as the nominal annual rate). Nominal versus real interest rate The concept of real interest rate is useful to account for the impact of inflation. In the case of a loan, it is this real interest that the lender effectively receives. For example, if the lender is receiving 8 percent from a loan and the inflation rate is also 8 percent, then the (effective) real rate of interest is zero: despite the increased nominal amount of currency received, the lender would have no monetary value benefit from such a loan because each unit of currency would get devaluated due to inflation by the same factor as the nominal amount gets increased. The relationship between the real interest va ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Fraction (mathematics)
A fraction (from la, fractus, "broken") represents a part of a whole or, more generally, any number of equal parts. When spoken in everyday English, a fraction describes how many parts of a certain size there are, for example, one-half, eight-fifths, three-quarters. A ''common'', ''vulgar'', or ''simple'' fraction (examples: \tfrac and \tfrac) consists of a numerator, displayed above a line (or before a slash like ), and a non-zero denominator, displayed below (or after) that line. Numerators and denominators are also used in fractions that are not ''common'', including compound fractions, complex fractions, and mixed numerals. In positive common fractions, the numerator and denominator are natural numbers. The numerator represents a number of equal parts, and the denominator indicates how many of those parts make up a unit or a whole. The denominator cannot be zero, because zero parts can never make up a whole. For example, in the fraction , the numerator 3 indicates that the ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Inverted Yield Curve
In finance, an inverted yield curve happens when a yield curve graph of typically government bonds inverts in the opposite direction and the shorter term US Treasury bonds are offering a higher yield than the long-term Treasury bonds. Longer maturity bonds usually have a higher percent yield return because they are more risky because of volatility in the market, there could be a Liquidity trap that wouldn't allow an investor to sell the bond security on the secondary market over the long run and they could get stuck with an underperforming asset. The inverted yield curve is one of the most reliable leading indicators for economic recession since at least 1955. The US Federal Reserve uses open market operations to adjust the Federal funds rate which pushes up short term bonds to catch the longer maturity bonds which are rising to catch up to inflation during the flattening of the yield curve. The inversion of the yield curve tends to predate a recession 7 to 24 months ahea ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
