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Oftentimes, loan officers use special underwriting software, which looks at your finances and generates a recommendation. They typically use this software as well as their own review of your financial situation to help them come to an approval decision. Loan officers may also assist you through the loan application process or suggest products and services that are a good option for your particular needs and wants. For example, if you’re applying for a mortgage, you may work with a loan officer to secure your home loan....

All states and Washington, D.C. impose property taxes but not always at the state level. Many do so at the municipal or county level. The federal government also doesn’t have a standard property tax. Learn more about the mill rate and what it means for your property taxes. Definition and Examples of a Mill Rate A mill equals $1 per each $1,000 of a property’s assessed value, which translates to one one-thousandth of a dollar....

A lender must balance the market’s frequent changes in interest rates over time against the need to continue issuing loans to keep their business moving forward. Understanding the factors that affect a mortgage lender’s ability to keep new loans in the pipeline involves learning the structure of the primary and secondary mortgage market. These markets, while complex, are a major reason why so many people in the U.S. can qualify for a home loan....

A non-compete agreement can also restrict you from taking clients (or bringing skills and/or proprietary information you got from your current job) with you if you leave your position. The legal idea behind it is that you should not be able to use resources from your current job to benefit a future employer—or yourself, if opening a competing business. Example of a Non-Compete Agreement Let’s say a florist hires a new floral designer and asks the designer to sign a non-compete agreement....

How Does an Organization Give Employees a Raise? Following are ways in which organizations increase employee pay by giving pay raises. Some organizations assign raises based on an employee’s review in an annual performance appraisal. This type of raise is often assigned based on an employee’s performance ranking on the review (1-5, for example, with a percentage of pay increase assigned to each numeric rating).This type of raise is subjective as the manager’s opinion is often the chief determiner of the employee’s increase....

This article discusses protective puts, how they work, and whether they’re a good idea for investors. Definition and Examples of a Protective Put A protective put is a type of a put option strategy that helps investors limit their maximum losses from owning a stock. This strategy is often employed by investors who are bullish on a long-term price rise for a stock but bearish over the short term....

Alternate name: Retracement, Consolidation Pullbacks are when the market price of an asset briefly retreats. These temporary declines are anomalies caused by the basic law of supply and demand. Basically, as a stock’s (or other asset) price increases, fewer buyers are willing to pay the higher prices. Eventually, as demand declines, prices start to fall to a point that attracts more buyers. Reversals can occur for many reasons. For example, a company’s earnings report may signal bad news to investors, say if its earnings or revenue fell significantly short of analyst expectations....

Your plan administrator may offer a standard form used by the plan. This will often be free, and easy to fill out on your own. You don’t have to use one of these model forms to obtain QDRO status. A lawyer also can draft a QDRO on your behalf. That may be worth the added expense. It can provide peace of mind that the order will be done the right way....

Definition and Example of a Retail Lender A retail lender works directly with individual borrowers or retail customers to process their loan rather than working through institutions. Banks, credit card companies, and credit unions are all considered retail lenders. With retail loans, an employee of the lender—typically called a loan officer—obtains the loan, reviews the application from the borrower, and tracks the application through the closing process. In comparison, a wholesale lender underwrites loans for other lenders....

Risk-free assets often play important roles in the financial system. For example, lenders looking for high-quality collateral might accept risk-free assets like Treasury bills. That way, they can easily rely on the known value and stability of their collateral in case the borrower defaults. In securities lending agreements, an investor might lend stock to a borrower who then provides risk-free assets as collateral. Risk-free assets also can help financial services organizations like banks meet financing and regulatory requirements....

If you have no credit or bad credit and you need a credit card, you might want to consider a secured credit card, especially if you don’t qualify for a typical unsecured credit card. Learn more about how they work, the pros and cons, and what to look for when choosing a card issuer. Definition and Example of Secured Cards A secured credit card works like a normal unsecured credit card for making purchases, but you have to pay a deposit....

Abbreviation: SPDA Single premium deferred annuities are popular with conservative investors who want insurance that they will have an income in retirement, regardless of what the broader market might do. They are easiest to set up when you have a single large sum of money to invest. You might start an SPDA after you: Receive an inheritanceCollect a 401(k) with a large balance after an employment separationSell a business How a Single Premium Deferred Annuity Works A deferred annuity is one that doesn’t start paying right away....

Alternate names: Skip-a-payment mortgage option, payment holiday In the U.S., it’s more likely that mortgage companies will provide forbearance or payment deferral options to borrowers who are unable to make a mortgage payment—or unable to immediately pay past-due mortgage payments—rather than offer a skip-payment mortgage as a standard product. Unlike a skip-payment mortgage, forbearance and payment deferral options generally require the borrower to demonstrate financial hardship. It is important to understand that none of these options are free, and they generally increase the amount of interest a borrower will pay over the long run....

Let’s say you use your credit card to buy groceries and pay your utility bills throughout the month. You end up spending $500. Your billing cycle ends, and your credit card company sends you the bill. Since you’re a transactor, you pay the $500 balance on your due date. Therefore, you avoid interest and a late fee on your purchases for that billing cycle. How a Transactor Works If you’re a transactor, you’ll usually fit a specific financial profile with characteristics that make it possible to always pay your credit card bill off completely every month....

To afford a memorable event, some couples turn to wedding loans. While you have several options for borrowing money to pay for a wedding, including personal loans marketed as wedding loans, taking on debt may not be the way you envision starting your shared future. Let’s review how wedding loans work and how to decide whether to borrow money to pay for your special day. Definition of a Wedding Loan A wedding loan is a loan you use specifically to pay for the costs of getting married....

For example, if your business publishes an ad that disparages another company, damaging its reputation, that company may lose business because of your ad. The injured party then sues your business for compensatory damages to recoup the income it has lost. If this happens, your business is likely covered under its general liability policy. Most policies have Coverage B, Personal and Advertising Injury Liability Coverage. Advertising injury and personal injury were once insured under two separate coverages....

MangoStar_Studio / Getty Images Here’s what an evergreen loan is, how this type of borrowing works, and the pros and cons of using evergreen loans. Definition and Examples of Evergreen Loans An evergreen loan is a type of loan that gives you access to a line of credit. You can borrow funds up to the maximum credit limit. As you make payments, the money becomes accessible again. This can continue indefinitely, which is where the term “evergreen” comes from....

An ex gratia payment doesn’t require the insurer to admit it’s liable for a loss or imply that the insurer’s payout was legally obligated. It’s strictly a voluntary payment made by the insurance company, sometimes to cut its losses or to maintain your business. How an Ex Gratia Payment Works An ex gratia payment is different from a traditional claim payment because it’s a payout that you aren’t eligible for based on the terms of your policy....

However, IRA CDs are different than regular CDs since they are specifically earmarked for retirement savings. As a result, IRA CDs are subject to the rules and tax laws for retirement savings accounts by the Internal Revenue Service (IRS). One of the benefits of an IRA CD—often called a retirement CD—is that you receive a fixed interest rate on your retirement savings. Fixed interest means you don’t have to worry about the fluctuation in rates....

Learn more about how issuers work, what they do, and why they’re an important thing for the average investor to understand. Definition and Example of an Issuer Issuers are any entity that seeks to raise money through the issuance of stock, bonds, or other securities. Generally, their goal in issuing securities is to raise the maximum amount of money possible from investors. Issuers are legally responsible for the obligations of the issue....