Interest rateThe amount paid by a borrower to a lender in exchange for the use of the lender's money for a certain period of time.
Interest Rate (High/Low)The percentage of interest paid for money in the deposit accounts, without regard to compounding, shown as an annual figure.
Interest Rate RiskInterest-rate risk describes the impact that a change in current interest rates is likely to have on the value of your investment portfolio.
Interest-free periodThe number of days you have to pay your bill in full before an interest charge is assessed on purchases.
Interest-Only MortgageWith an interest-only mortgage loan, you pay only the interest portion of each scheduled payment for a fixed term, often five to seven years.
Intermediate Service Provider (ISP)(ISP)Assists in processing tax return information between the ERO (or the taxpayer, in the case of online filing) and the Transmitter.
Intermediate-term bondIntermediate-term bonds mature in two to ten years from the date of issue. Typically, the interest on these bonds is greater than that on short-term bonds…
InternalizationInternalization occurs when a securities trade is executed within a brokerage firm rather than though an exchange.
International fundA mutual fund that invests in securities from a number of countries.
International Monetary Fund (IMF)The IMF was set up as a result of the United Nations Bretton Woods Agreement of 1944 to help stabilize world currencies, lower trade barriers, and help…
IntestateA person who dies without a will is said to have died intestate. In this case, the probate court in the person's home state - sometimes known as…
intrinsic valueA company's intrinsic value, or underlying value, is used to calculate its projected worth.
Introducing broker (IB)An introducing broker (IB) is a person or firm that takes orders to buy or sell futures contracts from clients and passes those orders to a futures…
Introductory APRThe APR charged during the credit card's introductory period after a credit card account is opened.
Investment bankAn investment bank is a financial institution that helps companies take new bond or stock issues to market, usually acting as the intermediary between the…
Investment ClubIndividual investors often join together, either formally or informally, to form investment clubs.
Investment CompanyA corporation or trust whose primary purpose is to invest the funds of its shareholders.
Investment gradeWhen a bond is rated investment grade, its issuer is considered able to meet its obligations, exposing bondholders to minimal default risk.
Investment horizonYour investment horizon is the point in time when you hope to achieve a particular investment goal.
Investment IncomeThe equity dividends, bond interest, and/or cash interest paid on an investment.
Investment objectiveAn investment objective is a financial goal that helps determine the type of investments you make.
Investment Propertya property not considered to be a primary residence that is purchased in order to generate income, profit from appreciation, or to take advantage of…
InvestorAny person or institution that invests in mortgages or mortgage-backed securities.
IRA rolloverIf you move assets from an existing individual retirement account (IRA) or an employer sponsored retirement plan to an IRA, you've completed an IRA…
IRC Section 401(a)Tax code section authorizing a qualified retirement plan to be operated and supported by an employer and to provide retirement benefits.
Irrevocable trustAn irrevocable trust is a legal agreement whose terms cannot be changed by the creator or grantor who establishes the trust without the consent of the…
IRS e-fileRefers to the preparation and transmission of tax return information to the IRS using telephone lines or a computer with a modem or Internet access.
IssueWhen a corporation offers a stock or bond for sale, or a government offers a bond, the security is known as an issue, and the company or government is the…
issuerIssuer means any person who issues or proposes to issue any security. Corporations, for example, may issue stock to the public, limited partnerships may…
January EffectEach year, the stock market tends to increase slightly in value between December 31 and the end of the first week of January.
Joint AccountAn account owned by two or more persons. Either party can conduct transactions separately or together as set forth in the deposit account contract.
JumboA loan that exceeds the statutory size limit eligible for purchase or securitization by either FNMA or FHLMC.
Jumbo CDJumbo CDs are large-denomination certificates of deposit with balances of at least $100,000, and sometimes $1 million or more.
Junior securityIn the world of bonds, the term junior means having less claim to repayment. If you own a junior security and the issuing company goes out of business…
Junk bondJunk bonds carry a higher-than-average risk of default, which means that the bond issuer may not be able to meet interest payments or repay the loan when…
Keogh planA group of qualified retirement plans, including profit sharing and money purchase defined contribution plans and a defined benefit plan, is available to…
KitingWriting a check in an amount that will overdraw the account but making up the deficiency by depositing another check on another bank.
LadderingLaddering is an investment strategy that calls for establishing a pattern of rolling maturity dates for a portfolio of fixed-income investments.
LapseTermination of a policy due to non-payment of premiums.
Last trading dayThe last trading day is the final day on which an order to buy or sell an options contract or futures contract can be executed.
Late ChargeThe fee charged for delinquent payment on an installment loan, usually expressed as a percentage of the loan balance or payment.
Late paymentA late payment is your failure to make at least the minimum payment so that it reaches us by or before the time and due date on your bill.
Late-payment feeA fee charged if your payment is received after the due date.
Lead underwriterWhen a company wants to raise capital by selling securities to investors, it partners with an investment bank, known as the lead underwriter.
LeaseA contract transferring the use of property or occupancy of land, space, structures, or equipment in consideration of a payment (e.g., rent).
LenderAn individual or financial institution that lends money with the expectation that the money will be returned with interest.
Lender-Placed Insuranceinsurance placed on a home or property by a lender to protect their interest in the collateral which secures the loan.
Level loadSome load mutual funds impose a recurring sales charge, called a level load, each year you own the fund rather than a sales charge to buy or sell shares.
Level term insuranceWith a level term life insurance policy, your annual premium remains the same for the term, which may be as long as 10 or 20 years.
Level yield curveA level yield curve results when the interest rate on short-term US Treasury issues is essentially the same as the rate on long-term Treasury bonds.
LeverageLeverage is an investment technique in which you use a small amount of your own money to make an investment of much larger value.
Leveraged buyoutA leveraged buyout occurs when a group of investors using borrowed money, often raised with high yield bonds or other kinds of debt, takes control of a…
LiabilityA legally enforceable financial obligation caused by negligence.
LiableResponsible or answerable by law; legally obligated.
LienLegal claim against a property. Once the property is sold, the lien holder is then paid the amount that is owed.
Lien StatusFor HMDA reporting purposes, lenders are required to report lien status for loans they originate and applications that do not result in originations…
LienholderA lienholder is the bank, finance company, credit union, other financial institution, or individual with whom you signed an agreement to borrow money…
Life expectancyYour life expectancy is the age to which you can expect to live. Actuarial tables establish your official life expectancy, which insurance companies use…
Life insuranceLife insurance is a contract you sign with an insurance company, obligating it to pay a death benefit of a certain value to the beneficiaries you name.
Life settlementIf you are over age 70 and no longer need your life insurance policy, you may be able to sell it to a third party in what's called a life settlement.
Lifecycle fundA lifecycle fund, which is a fund of funds, invests in individual mutual funds that a fund company puts together to help investors meet their objectives…
Lifeline accountA lifeline account is a basic checking account with low or no minimum deposit and balance requirements and very low or no monthly fees.
Lifetime learning creditYou may qualify to claim a lifetime learning tax credit of up to $2,000 each year for qualified higher educational expenses for yourself, your spouse, or…
Limit orderAn order to buy or sell securities in which the client has specified the price. The order can be executed only at the specified price or a better one.
Limit priceA limit price is the specific price at which you tell your stockbroker to execute a buy or sell order on a particular security.
Limited liability companyOrganizing a business enterprise as a limited liability company (LLC) under the laws of the state where it operates protects its owners or shareholders…
Limited partnerA limited partner is a member of a partnership whose only financial risk is the amount he or she has invested.
Limited partnershipA limited partnership is a financial affiliation that includes at least one general partner and a number of limited partners.
Line of CreditA pre-approved loan authorization with a specific borrowing limit based on creditworthiness.
Lipper, IncLipper provides financial data and performance analysis for more than 30,000 open- and closed-end mutual funds and variable annuities worldwide.
Liquid AssetLiquid assets are accounts or securities that can be easily converted to cash at little or no loss of value.
LiquidityThe ability of the market for a security to absorb a reasonable amount of buying or selling without major price changes.
Listed securityA listed security is a stock, bond, options contract, or similar product that is traded on an organized exchange.
Listing BrokerThis is the real estate broker that represents the sellers. They will market the property to bring buyers, which in turn bring offers to the seller.
Listing requirementListing requirements are the standards a corporation must meet to have its stock or bonds traded on a particular exchange.
Living willA living will is a legal document that describes the type of medical treatment you want-or don't want-if you are terminally ill or unable to communicate…
LoadCommissions charged on the purchase or sale of mutual fund units.
Load fundSome mutual funds charge a load, or sales commission, when you buy or sell shares or, in some cases, each year you own the fund.
LoanA transaction in which one entity, the lender, allows another, the borrower, to use property.
Loan Application NumberA unique identifier (up to 25 characters long) that can be used to retrieve the particular loan application to which the entry relates.
Loan Application Register (LAR)(LAR)also known as the HMDA-LAR, the LAR, or the Register. The term LAR refers to the loan application register format that has been prescribed for reporting…
Loan ContractThe written agreement between a borrower and a lender in which the terms and conditions of the loan are set.
Loan FeeA fee charged by a lender to make a loan (in addition to the interest charged to the borrower).
Loan flipThe lender encourages you to get additional cash by refinancing your mortgage again and again.
Loan modificationAn adjustment or compromise of an existing residential mortgage loan. (Excludes a refinancing transaction.)
Loan modification activitiesFor compensation or gain, or in the expectation of compensation or gain, engaging in or offering to engage in effecting loan modifications in Idaho.
Loan Modification ProvisionA contractual agreement in a loan that allows the borrower or lender to permanently change one or more of the terms of the original contract.
Loan noteA loan note is a promissory agreement describing the terms of a loan and committing the person or institution borrowing the money to live up to those…
Loan Origination FeesFees charged by the lender for processing the loan and which are often expressed as a percentage of the loan amount.
Loan ProceedsThe net amount of funds that a lending institution disburses under the terms of a loan, and which the borrower then owes.
Loan PurposeIndicates whether the purpose of the loan or application was for home purchase, home improvement, or refinancing.
Loan TermThe period of time between the start date and the termination date of a note or mortgage.
Loan to Value (LTV) Ratio(LTV)in real estate lending, the outstanding principal amount of the loan divided by the appraised value of the property underlying the loan.
Loan TypeIndicates whether the loan granted, applied for, or purchased was conventional, government-guaranteed, or government-insured.
Loan-to-Value Ratio (LTV)(LTV)The ratio of the loan principal (amount borrowed) to the appraised value (selling price).
Loan-to-Value Ratios (LTV)(LTV)The ratio of mortgage amount to value or sales price of a home. (Mortgage amount divided by value or sales price.).
Loan/Mortgage BrokerAn organization that provides (or offers to provide) the service of improving your credit record, obtaining a loan for you, or providing advice or…
lobbyistA person who represents the concerns or special interests of a particular group or organization in meetings with lawmakers.