Effective Annual Yield
Definition of "Effective annual yield"
Real rate of interest on a loan. It is the coupon rate divided by the net proceeds of the loan. Assume Sharon took out a $1,000,000, on year, 10% discounted loan to buy real estate. The effective interest rate equals: in this discount loan the proceeds received is only $900,000, which effectively increases the cost of the loan. The effective annual yield, also called the annual percentage yield (APY). Different kinds of investments have different compounding periods. For example, some banks pay interest quarterly. If an investor wants to compare investments with different compounding periods, she must place them on a common basis. It is used for this purpose and is computed as follows.
Popular Real Estate Terms
Wondering what is a quitclaim deed? Well, the best quitclaim deed definition is something like a legal document used when someone is transferring a real estate property to another person. ...
Real estate artificial intelligence refers to the application of artificial intelligence technologies and algorithms in the field of real estate. It involves using advanced computational ...
You’ll find the most common definition and use of the term ‘perimeter’ in mathematics, more precisely geometry, to determine an item’s or land’s surface area. ...
Expected market value of property if sold today. ...
Builder's ten-year guarantee that their workmanship, materials, and construction are up to established standards. The HOW provides reimbursement for the cost of remedying specified defects. ...
An opening that lets the outside air come in or out of a structure. A ventilation fan lets the structure have access to outside air when the switch is in open position. ...
Amounts received from the sale or disposal of real property less all relevant deductions (direct costs associated with the sale or disposal). ...
Securities supported by a pool of mortgages. The principal and interest are due monthly in the mortgages and are passed through to the investors who bought the pool. ...
Area or county used in the census or other data gathering functions that has a population of 50,000 inhabitants or more. ...
Have a question or comment?
We're here to help.