Personal Finance terms starting with H

45 terms

HAFA Short Sale when the homeowner sells the property for less than the full amount due on the mortgage.
Haircut A haircut, in the financial industry, is a percentage discount that's applied informally to the market value of a stock or the face value of a bond in an…
Hard assets Hard assets are the tangible property of a company or partnership, such as the buildings, furniture, real estate, and other equipment it owns.
Hardship withdrawal A hardship withdrawal, also known as a hardship distribution, occurs when you take money out of your 401(k) or other qualified retirement savings plan to…
Hazard Insurance insurance that is generally required under mortgage contracts to pay for loss or damage to a person’s home or property.
Hazard Insurance/Homeowners Insurance Insurance coverage that provides compensation to the insured in case of property loss or damage.
Head of household Head of household is an IRS filing status that you can use if you are unmarried or considered unmarried on the last day of a tax year and provide at least…
Head of Household filing status You must meet the following requirements: 1. You are unmarried or considered unmarried on the last day of the year. 2.
Health Insurance Health insurance covers some or all of the cost of treating an insured person's illnesses or injuries.
Health Savings Account (HSA) A health savings account is designed to accumulate tax-free assets to pay current and future healthcare expenses.
Hedge fund Hedge funds are private investment partnerships open to institutions and wealthy individual investors.
Hedger Hedgers in the futures market try to offset potential price changes in the spot market by buying or selling a futures contract.
Hedging Hedging is an investment technique designed to offset a potential loss on one investment by purchasing a second investment that you expect to perform in…
High Deductible Health Plan (HDHP) A high deductible health plan (HDHP) requires substantially higher than average out-of-pocket expenses before the insurance company will start paying for…
High-yield bond High-yield bonds are bonds whose ratings from independent rating services are below investment grade.
Highly compensated employees Highly compensated employees are people whose on-the-job earnings are higher than the level the government has established to differentiate this category…
Hold Used to indicate that a certain amount of a customer's balance may not be withdrawn until an item has been collected, or until a specific check or debit…
Holding company By acquiring enough voting stock in another company, a holding company, also called a parent company, can exert control over the way the target company is…
Holding period A holding period is the length of time you keep an investment. In some cases, a specific holding period is required in order to qualify for some benefit.
Home Affordable Foreclosure Alternatives Program (HAFA) a program that provides opportunities for homeowners who can no longer afford to stay in their home but want to avoid foreclosure to transition to more…
Home Affordable Modification Program (HAMP) A program that provides eligible homeowners the opportunity to modify their mortgages to make them more affordable. See www.MakingHomeAffordable.gov.
Home Affordable Refinance Program (HARP) A program that provides homeowners with loans owned or guaranteed by Fannie Mae or Freddie Mac an opportunity to refinance into more affordable monthly…
Home Affordable Unemployment Program (UP) a program that provides homeowners a temporary forbearance, which is a temporary period of time during which a regular monthly mortgage payment is reduced…
home equity The difference between what you paid for your home and what you get when you sell.
Home Equity Line of Credit (HELOC) A line of credit secured by the equity in a consumer's home. It can be used for home improvements, debt consolidation, and other major purchases.
Home Equity Loan A home equity loan allows you to tap into your home's built-up equity, which is the difference between the amount that your home could be sold for and the…
Home Equity Loan (HEL) A home equity loan allows you to tap into your home's built-up equity, which is the difference between the amount that your home could be sold for and the…
Home Improvement Loan A home improvement loan is (a) any dwelling-secured loan to be used, at least in part, for repairing, rehabilitating, remodeling, or improving a dwelling…
Home improvement scams A contractor talks you into costly or unnecessary repairs, steers you to a high-cost mortgage lender to finance the job, and arranges for the loan…
Home Inspector You hire and pay for this individual to analyze the home's physical condition before you buy it.
Home Ownership and Equity Protection Act (HOEPA) Lenders are required to report whether a loan is subject to the provisions of the HOEPA.
Home Owners’ Loan Act Enacted in 1933, this Act established the Home Owners’ Loan Corporation and authorized steps to: provide emergency relief with respect to home mortgage…
Home Purchase Loan A home purchase loan is any loan secured by and made for the purpose of purchasing a dwelling. See the definition of "dwelling."
Homeowner's Insurance Homeowners insurance is a contract between an insurance company and a homeowner to cover certain types of damage to the property and its contents, theft…
Honorarium A payment of money or anything of value for an appearance, speech, or article, less any necessary travel expenses.
Hope scholarship credit You may qualify for a Hope scholarship tax credit for money you spend on qualified educational expenses for yourself, your spouse, or a dependent child.
horizontal equity The concept that people in the same income group should be taxed at the same rate. "Equals should be taxed equally."
Hot issue If a newly issued security rises steeply in price after its initial public offering (IPO) because of intense investor demand, it is considered a hot issue.
Housing and Economic Recovery Act (HERA) HERA was enacted in 2008, and it established FHFA-OIG and FHFA, which oversees the GSEs’ operations.
Housing and Urban Development Act Enacted in 1968, this Act partitioned Fannie Mae into two separate organizations, a government-sponsored corporation (Fannie Mae) and a wholly-owned…
Housing expense the sum of a homeowner’s mortgage payment, hazard insurance, property taxes, and homeowner association fees.
HUD-1 Uniform Settlement Statement Standard form used to disclose costs at closing. All charges imposed in the transaction, including mortgage broker fees, must be disclosed separately.
Hybrid annuity With a hybrid annuity, you allocate part of your annuity's assets to providing fixed income payments and part to making variable income payments.
Hybrid mortgage Sometimes called an intermediate ARM, a fixed-period ARM, or a multiyear mortgage, a hybrid mortgage combines aspects of fixed-rate and adjustable-rate…
Hypothecation Hypothecation means pledging an asset as collateral for a loan. If you use a margin account to buy on margin or sell short, for example, you pledge…