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FICO scores typically from 580 to 619. Factors include three to four 30 day late mortgage payments and four to six 30 day late installment loan payments or two to four 60 day late payments. Should be one to two years since bankruptcy. Also referred to as Sub - Prime.
- Browse Related Terms: "A" Loan or "A" Paper, "B" Loan or "B" Paper, "C" Loan or "C" Paper, Fixed Expenses, mortgage interest, Serious Delinquency, Sub-Prime Loan, Variable Expenses
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Verify that the identity on the CAC Card matches the identity of the expected signer. If they do not match, the system informs the card holder to use the correct card. The process relies on a Public Key Infrastructure (PKI), possession of a CAC and knowledge of the PIN to ensure identity.
- Browse Related Terms: CAC Digital Signature, Common Access Card (CAC), Electronic Signature (or eSignature), Identity Theft, Personal Identification Number (PIN), Phishing, Smishing
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Some employers offer cafeteria plans, more formally known as flexible spending plans, which give you the option of participating in a range of tax-saving benefit programs.
If you enroll in the plan, you choose the percentage of your pretax income to be withheld from your paycheck, up to the limit the plan allows. You allocate your money to the parts of the plan you want to participate in.
For example, you can set aside money to pay for medical expenses that aren't covered by insurance, for child care, or for additional life insurance coverage. As you incur these kinds of expenses, you are reimbursed from the amount you have put into the plan.
Since you owe no income tax on the money you contribute, you actually have more cash available for these expenses than if you were spending after-tax dollars.
However, you must estimate the amount you're going to contribute before the tax year begins, and you forfeit any money you've set aside but don't spend. For example, if you've set aside $1,500 for medical expenses but spend only $1,400, you lose the $100.
In some plans the deadline for spending the money in your flexible spending account is December 31. Other plans provide up to a three-month expension.
- Browse Related Terms: Cafeteria plan, Cash balance plan, Defined Benefit Pension Plan, Defined benefit plan, Defined Contribution Pension Plan, Defined Contribution Plan, Employee Retirement Income Security Act (ERISA), Employer sponsored retirement plan, Federal Insurance Contributions Act (FICA), Flexible spending account, Integrated pension plan, Nondiscrimination rule, Pension, Pension Benefit Guaranty Corporation (PBGC), Plan participant, Portable benefits, Qualified retirement plan, Retirement Accounts, Self-directed retirement plan, Social Security, Vesting, Withholding
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In the bond markets, a call is an issuer's right to redeem bonds it has sold before the date they mature. With preferred stocks, the issuer may call the stock to retire it, or remove it from the marketplace.
In either case, it may be a full call, redeeming the entire issue, or a partial call, redeeming only a portion of the issue.
When a bank makes a secured loan, it reserves the right to demand full repayment of the loan - referred to as calling the loan - should the borrower default on interest payments.
Finally, when the term refers to options contacts, holding a call gives you the right to buy the underlying instrument at a specific price by a specific date. Selling a call obligates you to deliver the underlying instrument if the call is exercised and you're assigned to meet the call.
- Browse Related Terms: assignment, At-the-money, Automatic exercise, Call, Call option, Covered option, Exercise, Go short, Green shoe clause, In-the-money, Incentive stock option (ISO), Long position, Naked option, offset, Option, Option premium, Put option, Short position, Stock option, Strike price, Uncovered option, Writer
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Buying a call option gives you, as owner, the right to buy a fixed quantity of the underlying product at a specified price, called the strike price, within a specified time period.
For example, you might purchase a call option on 100 shares of a stock if you expect the stock price to increase but prefer not to tie up your investment principal by investing in the stock. If the price of the stock does go up, the call option will increase in value.
You might choose to sell your option at a profit or exercise the option and buy the shares at the strike price. But if the stock price at expiration is less than the strike price the option will be worthless. The amount you lose, in that case, is the premium you paid to buy the option plus any brokerage fees.
In contrast, you can sell a call option, which is known as writing a call. That gives the buyer the right to buy the underlying investment from you at the strike price before the option expires. If you write a call, you are obliged to sell if the option is exercised and you are assigned to meet the call.
- Browse Related Terms: assignment, At-the-money, Automatic exercise, Call, Call option, Covered option, Exercise, Go short, Green shoe clause, In-the-money, Incentive stock option (ISO), Long position, Naked option, offset, Option, Option premium, Put option, Short position, Stock option, Strike price, Uncovered option, Writer
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A callable bond can be redeemed by the issuer before it matures if that provision is included in the terms of the bond agreement, or deed of trust.
Bonds are typically called when interest rates fall, since issuers can save money by paying off existing debt and offering new bonds at lower rates. If a bond is called, the issuer may pay the bondholder a premium, or an amount above the par value of the bond.
- Browse Related Terms: Callable bond, Conversion price, Convertible bond, Deep discount bond, Exchange traded notes, Gilt-edged security, Indenture, Noncallable, Original issue discount, Par Value, Prerefunding, Redemption, Sinking fund, Zero-coupon bond, Zero-coupon convertible bond
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A debt security whose issuer has the right to redeem the security at a specified price on or after a specified date, but prior to its stated final maturity.
- Browse Related Terms: bond, Callable Debt, Debt security, Deferred payments, Duration, Guaranty Fee, Medium Term Notes, Mortgage-Backed Security (MBS), Real Estate Mortgage Investment Conduit (REMIC), Stripped MBS (SMBS)
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A slender rod of cast lead, with or without grooves, used in casements and stained-glass windows to hold the panes or pieces of glass together
- Browse Related Terms: Brick Molding, Came, configuration, Glazing, Latticework, Leaded window, Light, Molding, Muntin, Sidelight, Skirt, Special windows
A check that a bank has paid, charged to the account holder's account, and then endorsed. Once canceled, a check is no longer negotiable.
A check that a bank has paid, charged to the account holder's account, and then endorsed. Once canceled, a check is no longer negotiable.
Office of the Comptroller of the Currency, U.S. Department of the Treasury - Cite This Source - This Definition- Browse Related Terms: Alteration, Canceled Check, certificate of deposit, Check 21 Act, Check truncation, Electronic Funds Transfer (EFT), Encoding, Forgery, money forwarder [transmitter] and issuer of money orders and travelers checks, Return Item, Substitute check, Time certificate of deposit
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A check that a financial institution paid, charged to the account holder's account, and then endorsed. Once canceled, a check is no longer negotiable.
- Browse Related Terms: Account holder, ATM surcharge, Canceled Check (Share Draft), Check Deposit Return, Early Withdrawal Penalty, fee, Fee Charged for Use of Other ATM, Fee Charged for Use of Your Own ATM, Minimum Balance Required, Money Order Fee, Monthly or Annual Fee, Overdraft Fee, Overdraft Protection, Per Check Fee (If Minimum Balance is Not Maintained), Per Check Fee (If Minimum Balance Maintained), Service Fee Per Month
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If you don't pay your premiums, an insurance company can cancel your personal auto policy by giving 10 days written notice. The company is required to give you 30 days written notice if it is canceling your policy for any other reason.
A termination of a policy before its normal expiration date.
Termination of a policy before its normal expiration date.
Termination of an insurance policy by the company or insured before the renewal date.
The termination of a policy at a date other than its annual expiration date.
- Browse Related Terms: Binder, Cancellation, Declarations Page ("Dec Page"), Endorsement, Lapse, Lapsed Policy, Non-renewal, Premium Finance Company, Reinstatement, Rental Reimbursement/Transportation Expenses, Rider, Surcharge
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Termination of an insurance policy by the company or insured before the renewal date.
Texas Department of Insurance and Office of Public Insurance Counsel - Cite This Source - This DefinitionTermination of a policy before its normal expiration date.
A termination of a policy before its normal expiration date.
- Browse Related Terms: Binder, Cancellation, Effective date, Expiration date, Lapse, Lapsed Policy, Non-renewal, Policy period, Reinstatement, Renewal
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A cap is a ceiling, or the highest level to which something can go.
For example, an interest rate cap limits the amount by which an interest rate can be increased over a specific period of time. A typical cap on an adjustable rate mortgage (ARM) limits interest rate increases to two percentage points annually and six percentage points over the term of the loan.
In a different example, the cap on your annual contribution to an individual retirement account (IRA) is $4,000 for 2006 and 2007 and $5,000 in 2008, provided you have earned at least that much. If you're 50 or older, you can make an additional catch-up contribution of $1,000 each year.
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To prevent excessively high payment increases, ARM's place a cap on the amount by which the interest rate may rise at any single adjustment, over the life of the loan, or both.
State of Maine, Department of Professional and Financial Regulation - Cite This Source - This Definition
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A limit placed on adjustments in adjustable rate mortgages to protect the borrower from large increases in the interest rate or the payment level.
A limit in how much an adjustable rate mortgage's monthly payment or interest rate can increase. A cap is meant to protect the borrower from large increases and may be a payment cap, an interest cap, a life-of-loan cap or an annual cap. A payment cap is a limit on the monthly payment. An interest cap is a limit on the amount of the interest rate. A life-of-loan cap restricts the amount the interest rate can increase over the entire term of the loan. An annual cap limits the amount the interest rate can increase over a twelve-month period.
A limit, such as one placed on an adjustable rate mortgage, on how much a monthly payment or interest rate can increase or decrease, either at each adjustment period or during the life of the mortgage. Payment caps do not limit the amount of interest the lender is earning, so they may cause negative amortization.
For an adjustable-rate mortgage (ARM), a limitation on the amount the interest rate or mortgage payments may increase or decrease. See also "Lifetime Payment Cap," "Lifetime Rate Cap," "Periodic Payment Cap," and "Periodic Rate Cap"
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Your ability to make your mortgage payments on time. This depends on your income and income stability (job history and security), your assets and savings, and the amount of your income each month that is left over after you've paid for your housing costs, debts and other obligations.
The ability to make mortgage payments on time, dependant on assets and the amount of income each month after paying housing costs, debts and other obligations.
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Capital is money that is used to generate income or make an investment. For example, the money you use to buy shares of a mutual fund is capital that you're investing in the fund.
Companies raise capital from investors by selling stocks and bonds and use the money to expand, make acquisitions, or otherwise build the business.
The term capital markets refers to the physical and electronic environments where this capital is raised, either through public offerings or private placements.
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The topmost member, usually decorated, of a column or pilaster.
- Browse Related Terms: Architrave, Capital, Colonnade, Colonnette, column, Doric, Entablature, Foliate, Ionic, Pilaster, Plinth, Shaft, Trefoil, Volute
Record of capital transfers between U.S. residents and foreign residents, such as debt forgiveness and migrants' transfers, and acquisitions and disposals of nonproduced nonfinancial assets between residents and nonresidents. Related terms: Balance of payments, Current account (international), Financial account (international).
- Browse Related Terms: Balance of payments, BPT, Business, professional, and technical services transactions, Business, professional, and technical services transactions (BPT), Capital account (international), Capital accounts (international), Cross-border trade in services, Current account (international), Direct investment capital flows, Financial account (international), Financial accounts (international), Financial asset, Sales of services through foreign affiliates of multinational companies, Special drawing rights (SDR)
- Browse Related Terms: Balance of payments, BPT, Business, professional, and technical services transactions, Business, professional, and technical services transactions (BPT), Capital account (international), Capital accounts (international), Cross-border trade in services, Current account (international), Direct investment capital flows, Financial account (international), Financial accounts (international), Financial asset, Sales of services through foreign affiliates of multinational companies, Special drawing rights (SDR)
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Any increase in a capital asset's fair market value is called capital appreciation. For example, if a stock increases in value from $30 a share to $60 a share, it shows capital appreciation.
Some stock mutual funds that invest for aggressive growth are called capital appreciation funds.
- Browse Related Terms: American depositary receipt (ADR), Annuity unit, Block trade, Capital appreciation, Exchange-traded fund (ETF), expense ratio, Institutional fund, Mark to the market, Net asset value (NAV), Offshore fund, Open-end mutual fund, Proprietary fund, share, Standard & Poor's Depositary Receipt (SPDR), Underlying investment, Unit investment trust (UIT), Unit trust
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An increase in the value of a stock.
- Browse Related Terms: AICPA PFP, Asset allocation, Asset Classes, Capital appreciation, Cash Equivalents, Distribution, diversification, dividend, Income, inflation, Service Credit, Yield
- Browse Related Terms: Capital consumption adjustment, Capital consumption adjustment (CCAdj), (private), Capital consumption allowance, Capital consumption allowance (CCA), (private), Capital consumption allowances, CCA, CCAdj, CFC, Consumption of fixed capital, Consumption of fixed capital (CFC), Gross domestic investment, Gross private domestic investment, National income (NI), Rental income of persons