PRINCIPAL REDUCTION
A reduction in the principal owing on a loan, usually a mortgage, to lessen the outstanding principal balance on qualifying properties that have negative equity. Principal reduction is normally employed to prevent foreclosures on properties, which may be more costly to financial institutions than a reduced principal owed to them. As a result, principal reduction typically requires specific requirements in order for a homeowner to qualify, such as ability to commit to payments, to whom a mortgage payer owes the principal and whether the total balance owing on the mortgage is greater than the value of the property.
POPULAR TERMS
Maximum Loan-to-Value Ratio
Maximum allowable ratio of a loan’s size to the property’s value that is securing the loan. Lenders measure the risk using loan-to-valu ...
Cash Return on Assets Ratio
Ratio used to differentiate a business’ performance against other industry members. The company’s analysts may use the ratio internally ...
Retention Bonus
A reward given to an employee that serves as an incentive to keep that key employee on the job during a significant business cycle, like a merger o ...
Infrastructure
Basic physical systems of a business or country such as roads, utilities, transportation, communication, sewage, and water and electric systems, am ...
Cost Control
Act of managing and/or reducing business expenditures done by determining the costs and evaluating if such expenses are affordable and reasonable. ...
POPULAR ARTICLE
SEE FOREX TUTORIAL
Principles of Trading: Risk Management
It is imperative for traders to master risk management, which includes knowing how much you could lose per trade or over time and evaluating the pe ...
Buying a Home: Looking for an Agent
You will need to find an agent if you want to purchase your dream house. These agents are the only ones who have access to lock box codes, which ar ...
Choosing Your Bank
Now that you’ve learned the basics of banking and the importance of it, you are now ready to put your money in a bank. But which bank should ...
An Introduction to Student Loans
A college education is one of the most essential investment in a person’s life. Unfortunately, in this time and age, it has also become one o ...
An Introduction to Stocks
Imagine this: you are a company owner, you get income but you don’t go to work, you just do what you want and the money keeps coming in. This ...
ECONOMIC CALENDAR
| Time | Country | Indices | Period |
|---|---|---|---|
| 05:00 | Credit Card Spending | Mar | |
| 14:30 | Industrial Product Price Index | Mar | |
| 14:30 | New Housing Price Index | Mar | |
| 14:30 | Raw Materials Price Index | Mar | |
| 16:00 | Consumer Confidence | Apr | |
| 02:30 | PMI Manufacturing | Apr | |
| 02:30 | Tertiary Industry Index | Apr | |
| 02:30 | PMI Composite | Apr | |
| 08:00 | Public Sector Net Borrowing | Mar |
