An option which allows the borrower not to pay the points associated with the loan origination fee. This savings is offset by a slightly higher loan interest rate.

Yield that would be realized on a callable bond in the event that the bond was redeemed by the issuer on the next available call date.

Concept used to determine the rate of return an investor will receive if a long-term, interest-bearing investment, such as a bond, is held to its maturity date. It takes into account purchase price, r [..]

Yield calculation used, in lieu of "yield-to-maturity" or "yield-to-call," where books are retired systematically during the life of the issue, as in the case of a "Sinking Fu [..]

Attempt to resolve a problematic situation, such as a bad loan.

A prepayment premium that allows lenders to attain the same yield as if the borrower made all scheduled mortgage payments until maturity. The lender collects a lump sum from the borrower based on a fo [..]

This application, also called a 1003 is the standard loan application used by all residential lenders.

Government insured loan guaranteed by the Department of Veterans Affairs, requiring very low or no down payments and with generous requirements for qualification. They are available only to veterans o [..]

A federal law requiring the disclosure of credit terms using a standard format. This is intended to facilitate comparison of loan terms between financial institutions.

The process of deciding whether to make a loan based on credit, employment, assets other factors.