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Mortgage Glossary

Debt service coverage ratio

Debt service coverage ratio

Published:September 27, 2022 Modified:November 3, 2022 What Is Debt Service Coverage Ratio? The debt service coverage ratio (DSCR) is a crucial indicator of a company’s capacity for loan repayment, acquisition of fresh capital, and dividend distribution. It is one of

Investor

Investor

Published:September 10, 2022 Modified:November 3, 2022 What are Investors? Individuals or entities (such as businesses or mutual funds) who invest money with the hope of making a profit are called investors. Investors depend on a variety of financial instruments to

Real estate investing

Real estate investing

Published:September 2, 2022 Modified:November 3, 2022 What Is Real Estate Investing? It is possible to invest in real estate by buying, managing, renting out, or selling properties for a profit. Investing in real estate, either actively or passively, is the

Loan to value ratio

Loan to value ratio

Published:September 2, 2022 Modified:November 3, 2022 What Is Loan To Value Ratio? Financial institutions and other lenders assess the loan-to-value (LTV) ratio as a gauge of the lending risk prior to accepting a mortgage. Loans with high LTV ratings are

Liquid asset

Liquid asset

Published:August 30, 2022 Modified:November 3, 2022 What are the Liquid Assets? Liquid assets are those that can be swiftly and readily converted into cash. Examples of liquid assets include cash, money market instruments, and marketable securities. Tracking liquid assets as

Annual revenue

Annual revenue

Published:August 19, 2022 Modified:November 3, 2022 What Is An Annual Revenue? The total amount of money a business brings in each year from the sale of goods, services, assets, or capital is known as annual revenue. Your annual revenue does

Financial statement

Financial statement

Published:August 19, 2022 Modified:November 3, 2022 What Are Financial Statements? A financial statement is a document detailing the activities and financial success of a firm. Government organizations, accounting companies, etc. routinely perform a review of financial statements to ensure accuracy

Hard money

Hard money

Published:August 14, 2022 Modified:November 30, 2022 Hard money meaning A common form of lending in real estate investing is called hard money. Other names for hard money loans are asset-based loans, bridge loans, and STABBL loans (short-term asset-backed bridge loans).

Face value

Face value

Published:August 14, 2022 Modified:November 3, 2022 What Is A Face Value? A financial concept known as “face value” refers to a security’s nominal or monetary value as indicated by its issuer. The original cost of the stock, as stated on

Loan term

Loan term

Published:August 5, 2022 Modified:November 3, 2022 What Is A Loan Term? The length of a loan, or the time it takes to be fully repaid when the borrower is making scheduled payments, is referred to as the loan term. The

Receivables

Receivables

Published:July 26, 2022 Modified:November 3, 2022 What Are Receivables? Receivables, also known as accounts receivable, are sums owing to a business by its clients for products or services that have already been provided or utilized but have not yet been

Invoice

Invoice

Published:July 26, 2022 Modified:November 3, 2022 What Is An Invoice? A time-stamped commercial document known as an invoice lists the specifics of a transaction between a buyer and a seller and records it. The invoice often details the conditions of

Balance sheet

Balance Sheet

Published:July 22, 2022 Modified:November 3, 2022 What is a Balance Sheet? A balance sheet in financial accounting is a summary or list of financial balances for an individual or company. It can be sole proprietorship, business partnership, corporation, private limited

Funding

Funding

Published:July 22, 2022 Modified:November 3, 2022 What Is Funding? The purpose of a fund is to set aside funds for a specific purpose. For instance, a municipal government can create a fund to build a new civic center, a college

Down payment

Down payment

Published:July 13, 2022 Modified:November 3, 2022 What Is A Down Payment? A down payment is a quantity of money that a buyer pays at the beginning of a pricey good or service purchase. A portion of the entire purchase price

Investment

Investment

Published:July 7, 2022 Modified:November 3, 2022 What Is An Investment? A purchase made with the intention of creating income or capital growth is known as an investment. An asset’s value increasing over time is referred to as appreciation. When a

Credit score

Credit score

Published:July 7, 2022 Modified:November 3, 2022 What Is A Credit Score? A credit score is a three-digit figure that ranges from 300 to 850 and is used to determine your credit risk, or how likely you are to make on-time

Obligation

Obligation

Published:June 30, 2022 Modified:November 3, 2022 What is an Obligation? Simply, obligation refers to the responsibility of a party to fulfill the contractual terms and conditions. In case, the obligation is not met, the legal system often provides recourse for

Leasing

Leasing

Published:June 30, 2022 Modified:November 3, 2022 What Is Leasing? A lease is a legally binding agreement between two parties in which one commits to rent property owned by the other on particular terms. It allows a tenant or lessee to

Interest rate

Interest rate

Published:June 22, 2022 Modified:November 3, 2022 What is an Interest Rate? In addition to the principal, the interest rate refers to how much a lender charges the borrower for the use of assets. The money generated from a credit union

Cash flow

Cash flow

Published:June 22, 2022 Modified:November 3, 2022 What is  Cash Flow? Cash Flow is net balance of cash coming into and out of a business at a certain point in time. A business’s cash is continually flowing in and out. When

Asset

Asset

Published:June 15, 2022 Modified:November 3, 2022   What is an Asset? The term asset refers to a type of economic advantage that people or entities have today, tomorrow, or in the future. Consequently, an asset is anything that you own

Renovation

Renovation

Published:June 15, 2022 Modified:November 3, 2022 What is a Renovation Renovation means to “create new again”—to “revitalize.” The process of renovating (also known as remodeling) a broken, damaged, or outmoded structure. Commercial and residential renovation are the most common types

Finance committee

Finance committee

Published:June 9, 2022 Modified:November 3, 2022 What is a Finance Committee? The Finance Committee oversees the organization’s budget and provides financial analysis, guidance, and monitoring. Their main role is to guarantee that the organization has the financial resources it requires

Donation

Donation

Published:June 2, 2022 Modified:November 3, 2022 What are Donations? Individuals, businesses, and other organizations can make donations to support the organization’s mission and objectives. They also provide funds to enable organizations to continue providing high-quality programs for the community. Each

Credit

Credit

Published:June 2, 2022 Modified:November 3, 2022 What is the meaning of Credit? This term has many meanings in the financial world, but credit is generally defined as a contract agreement in which a borrower receives a sum of money or

Fundraising

Fundraising

Published:May 30, 2022 Modified:November 3, 2022 What is Fundraising? Fundraising is the process of soliciting and collecting voluntary financial contributions from individuals, businesses, charitable foundations, or government agencies. Although fundraising is most commonly associated with efforts to raise funds for

Charity

Charity

Published:May 27, 2022 Modified:November 3, 2022 What is a Charity? Charities are organizations whose primary goals are charity and social well-being. charitable, educational, religious or any other activity serving the public interest or common benefit. There are many legal differences

Budget

Budget

Published:May 25, 2022 Modified:November 3, 2022 What a Budget? Budgets are an estimate of future revenue and expenses. They are usually prepared and re-evaluated periodically. A budget can be created for an individual, a group, a company, a government or

Capital

Capital

Published:May 20, 2022 Modified:November 3, 2022 What is Capital? Capital in the form of money or other assets owned by a person or organization or available or contributed for a particular purpose such as starting a company or investing. Capital

Nonprofit

Nonprofit

Published:May 19, 2022 Modified:November 3, 2022 What a Nonprofit? A nonprofit organization (NPO), also known as a non-business entity,not-for-profit organization, or nonprofit institution,is a legal entity organized and operated for a collective, public or social benefit, in contrast with an

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