Definition of "Rule of 78"

Gene Barginear real estate agent

Written by

Gene Barginearelite badge icon

U-Sell By Owner- Residential Brokerage

Also called the Rule of the Sum of the Digits. An approach that bank use to formulate a loan amortization schedule. It results in a borrower paying more interest in the beginning of a loan when he/she has the use of more of the money, and less interest as the obligation is reduced. Interest can be saved by preparing the loan.

image of a real estate dictionary page

Have a question or comment?

We're here to help.

*** Your email address will remain confidential.
 

 

Popular Real Estate Terms

Used primarily by real estate corporations as a means of restructuring and reorganizing existing debts. Creditors must vote on a debt-paying plan and a judge must give approval. It provides ...

See annuity due. ...

The definition of voluntary alienation in real estate is the transfer of the residency rights or deed of a property between two parties without the use of extraneous legal measures. Unlike ...

A written, legally enforceable document used to transfer title to real estate, See also quit claim deed; warranty deed. ...

Limited-time warranty against defects, offered by builders to new home purchasers. Normally effective for a relatively short period of time, such as one or two years. ...

What’s the definition of real estate collateral? Could we say it’s like keeping a hostage? No, that would be relatively insensitive. But the idea is similar. In real estate, ...

Architectural style featuring a long low roof line with a continuous row of windows and a plain exterior. It is very open design with long horizontal lines rather than having small secluded ...

Generation X, also known as Gen X , is the generational extract of Americans that are sandwiched between the Baby Boomer Generation and the Millennial generation (also called ...

System of interconnected pipes, radiators, and/or ducts designed to heat a building utilizing a main heating unit. The system is controlled through a thermostat that regulates the ...

Popular Real Estate Questions