From the category archives:

Glossary

Welcome to my glossary of finance terms, here you can find definitions for many of the terms and acronyms I use throughout this site. To navigate through the Glossary simply select one of the letters above and browse at your leisure.

Annual Percentage Yield (APY)

July 31, 2009

Annual Percentage Yield is a reflection of the amount of interest you are likely to earn on a given investment. You will typically see this term when looking at the interest rates for savings accounts and CD’s because it takes into account compounding and is slightly higher than its counterpart the Annual Percentage Rate.

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Par Rate

July 31, 2009

Par rate is the base rate charged by a lender, this rate requires no buy down and the broker gets no Yield Spread Premium (YSP). This rate is pre-adjustments, fees, or yield spread premiums charged by the broker. The Par Rate is then adjusted based on several factors such as your credit score, the loan […]

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Adjusted Gross Income

July 31, 2009

Adjusted gross income is an American tax term referring to your gross income minus any adjustments to your income.   The adjustments to your income are usually in the form of deductions as defined by the IRS. Your adjusted gross income is listed as the last number on the first page of your 1040 form.

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