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Popular Real Estate Glossary Terms

Statutory statement of accounting principle (SSAP)

State law that stipulates that goodwill as an admitted asset cannot be greater than 10% of adjusted surplus. ...

Unsecured long-term debt. There is no collateral or lien on the property. A debenture can only be issued by a financially sound borrower with an excellent credit rating because no ...

Life of loan cap

An upper limit on the interest rate that can be charged in a variable rate mortgage over its life. For example, a variable rate loan is initially offered at 7% loan rate, and its interest ...

Utilization of life insurance to make annual gifts into a trust in order to produce the largest tax-free death benefit possible to the trust beneficiaries. ...

Point of diminishing returns

Point at which additional units of a specific resource no longer cause the level of satisfaction that was previously attained. ...