Trading On Equity
Also called financial leverage. The use of borrower funds to magnify return. Trading profitably on the equity, also called favorable financial leverage, means that the borrowed funds generate a higher rate of return than the interest rate paid for the use of the money. The excess accrues to the benefit of the owner because it magnifies, or increases, his or her earnings.
Popular Real Estate Terms
Measure of land representing one square mile. A section equals 640 acres. ...
Is a wholly owned government corporation administered by the Department of Housing and Urban Development. It does not by mortgages; it issues pass-through securities in which interest and ...
Timber wood situated on the exteriors of a loading deck to safeguard it from damage resulting when trucks unload and load. ...
Limited partnership in which limited partners rely on the general partner to choose specific properties after the funds are available. ...
A detailed list of property. The goods of a business, such as houses by a builder. ...
List of business property. ...
Descriptive of a property boundary that follows the course of a river or estuary. For example, a land description may say its boundary follows "the meander of the river" meaning the ...
Interest rate on an adjustable rate mortgage based on the total of the current value of an index and margin applicable to the mortgage. The rate is the basis for the computation of monthly ...
Listing Agreement A.K.A. Listing is basically a contract allowing a real estate agent or broker to list a home for sale and act as the home seller agent representing his/her interests ...
Have a question or comment?
We're here to help.