There are several different types of notes, including government-issued notes, mortgage notes, and convertible notes. Alternate name: Notes payable A Treasury note, or T-note, is generally the most common example of a note. Let’s say you purchase a T-note for $10,000 with a five-year term. In this scenario, you are the lender and the U.S. government is the borrower. Every six months, the government pays a portion of the principal plus interest over the course of five years....

Definition and Examples of a Rebuilt Title A new automobile comes with a “clear” or “clean” title—a designation that indicates it has never sustained any significant damage. A clear title can apply to a financed car or one that you own outright. When a car sustains significant damage in a traffic accident or from a different type of event, such as a flood, theft of parts, or vandalism, the insurance company may consider it a total loss....

Let’s take a look at release clauses, how they work, and what they mean for you. Definition and Examples of Release Clauses A release clause is a provision in a contract that releases one party’s interest in another party’s property. There is more than one type of release clause, although you’ll find these most commonly used in real estate transactions. When used in reference to a mortgage contract, a release clause allows the borrower to remove a lender’s interest from their property....

Alternate names: off-balance sheet vehicle (OBSV), special purpose entity SPVs can be created using different legal structures, such as a limited liability company (LLC), a trust, a limited partnership, or a corporation. The sole purpose of an SPV is to separate the risk of the ventures in the SPV from the parent company’s operations. The parent company makes the business decisions, not the SPV, which is governed by rules clearly defined upon the entity’s creation....

While you may use the proceeds from any cash-out refinance mortgage to do this, mortgage financier Fannie Mae also offers a specific product called “Student Loan Solutions” designed specifically to serve as a student loan cash-out refinance loan. What Is a Student Loan Cash-out Refinance? A student loan cash-out refinance mortgage loan involves taking a new home loan for more than you currently owe and using the extra cash to pay off one or more of your student loans....

The Drawbacks to Having a Thin Credit File One of the biggest problems of having a thin credit file is the difficulty in opening new accounts. Here’s why. When you make an application with a bank or another business, they’re going to consider two major factors: your credit history and your income. Your credit history is reviewed to evaluate the likelihood that you’re going to repay a monthly bill. Likewise, your income helps gauge your ability to repay....

Learn more about wrap accounts and how their fee structure works. Definition and Example of a Wrap Account Wrap accounts are investment accounts that come with a “wrapped” fee or fees. Essentially what that means is all costs to manage and maintain the account, including brokerage and administrative expenses, are covered by this wrap fee. Typically, that fee or set of fees is determined by the total market value of the investment account....

Arm’s length transactions are commonly required for short sales, which are an alternative to foreclosure. In a short sale, a lender allows a homeowner to sell their home to pay off their mortgage, even if the sale doesn’t net enough to pay off the balance of the homeowner’s mortgage. The process varies by state, and in some states, the lender may be able to collect the difference between the sales price and the mortgage balance....

Bitcoin is widely considered to be the first cryptocurrency. It is produced, or “mined,” using advanced computer software that solves mathematical problems. Bitcoin has several attributes that set it aside from traditional currencies as a pan-global means of exchange. Central banks or monetary authorities do not control the number of bitcoins. Bitcoin is also decentralized, making it effectively global. If you have a computer, you can set up a bitcoin address to receive or transfer bitcoins in seconds....

Despite having terrific credentials, if it doesn’t appear that you’ll fit in with management, the other employees, or with the company culture, the job may not be right for you, and you may not get a job offer. Matching Your Resume What makes you a good fit for an employer? There are many different dimensions impacting how well you will fit in if hired. Perhaps the most obvious aspect of fit is whether your resume lines up with the qualifications of the job....

Consider an example in which you’re saving for retirement. You know you plan on retiring one day. And unless you have a pension, you know you’ll have to generate income on your own. So, you maintain a lower level of consumption during your working years. As a result, you build up enough cash reserves to afford the same standard of living when your income stops. How Consumption Smoothing Works Instead of spending all of your extra money when you have a good month, or saving it all so you can splurge during a bad month, consumption smoothing suggests that you’ll adjust your spending and saving as needed so your standard of living doesn’t change dramatically between one period and the next....

When you use your credit card at a merchant, the payment terminal needs to transmit identifying information about your card to the payment processor in order to process the transaction. This information, of course, needs to be protected from unauthorized access. How Credit Card Encryption Works When you insert your credit or debit card into a chip reader machine while making a purchase, the cryptogram generated inside the chip is sent to the credit card processor so it can validate the purchase and authorize the transaction by using a decryption key to decipher the cryptogram....

One of the most common types of debt forgiveness is credit card debt. If for some reason, you can’t make payments on your credit card balance, the issuer can sell the debt to a collection agency. The agency begins the collection process, attempting to contact you about the debt. Most collectors will settle the debt for an amount that gets them their money back plus a bit more to help their business generate revenues....

Learn the specifics about what denomination means in certain contexts, and find out why it’s significant to your everyday personal finance and investing. Definition and Example Denomination Denomination refers to the face value of financial instruments such as currency, coins, bonds, and stocks. Cash is the most straightforward example of denominations in our everyday lives. The Federal Reserve Board issues the money in denominations of $1, $2, $5, $10, $20, $50, and $100 notes....

There are many different methods for calculating how much of an asset’s cost can be written off. Find out more about depreciation, the most common methods for calculating it, and some common examples. Also learn which depreciation method is suitable for your business, and how to claim it on your taxes. Definition and Examples of Depreciation Depreciation is the process of allocating the cost of an asset over its useful life....

An earnings season calendar might look like this: First-quarter earnings season: AprilSecond-quarter earnings season: JulyThird-quarter earnings season: OctoberFourth-quarter earnings season: January An earnings season generally lasts about six weeks. Historically, the unofficial starting point of an earnings season revolved around the release of earnings reports by aluminum producer Alcoa (AA). After splitting into two companies, it’s no longer the first to report earnings each year. Multiple corporations generally release reports on the same day....

Liability covers your responsibility to the other driver or passengers for injury and property damage. It’s required in nearly every state. Collision coverage applies to damage that occurs to your car if you collide with something. Comprehensive coverage pays for things that happen to your vehicle outside of a collision. Every state in the U.S. can set its own requirements. These often include bodily injury liability and property damage liability. Some states also require insurance for uninsured or underinsured motorists....

FG Trade / Getty Images If a borrower defaults on a full-recourse debt, the lender can seize any collateral that guarantees the loan. If that collateral doesn’t cover the remaining loan amount, the lender can also pursue other collections activities, such as garnishing wages. In contrast, non-recourse debt restricts a lender’s collection attempts. The lender can take any collateral guaranteeing the loan, but can’t go after a borrower’s other property or assets....

Wider Tax Brackets A tax bracket is an income range that determines your tax rate. Your tax rate increases as your income increases. Wider tax brackets for the head of household status means that the tax rate for some or all of your income will likely be lower than other filing statuses with the same income. Here are the tax brackets for 2022: Investments held over 12 -months are treated as long-term capital gains and are taxed at rates lower than ordinary income tax rates....

By its nature as a predictive measure, implied volatility is theoretical. It’s based on how the security is behaving in the market and what’s happening with supply and demand around that particular stock option. Fundamentally, it’s a measure of the market’s expectations for how risky that option is. Acronym: IV How Implied Volatility Works If a stock has a price of $100 and an implied volatility of 30%, that means its price will most likely stay between $70 and $130 over the course of the next year....