Finance Dictionary

A 2-1 buydown loan is a type of mortgage loan in which the interest rate is temporarily reduced for the first two years of the loan term. This is typically…

A 412(i) plan is a type of defined benefit pension plan. It is designed for small business owners and self-employed individuals, and is named after the section of the Internal…

A 501(c) organization is a type of nonprofit organization in the United States. The name refers to the section of the Internal Revenue Code that defines these organizations and sets…

An 8-K is a form that publicly traded companies are required to file with the Securities and Exchange Commission (SEC) to disclose certain material events that may be of interest…

A 501(c)(3) organization is a type of non-profit organization that is exempt from federal income tax under section 501(c)(3) of the Internal Revenue Code. These organizations are considered to be…

"60-plus delinquencies" refers to a category of delinquent loans that are at least 60 days past due. This is a common measure of credit risk, as loans that are significantly…

A 2/28 Adjustable-Rate Mortgage (2/28 ARM) is a type of adjustable-rate mortgage (ARM) that has a fixed interest rate for the first two years of the loan, after which the…

A 529 plan is a type of savings plan that is designed to encourage saving for future education expenses, such as college or vocational school. The plan is named after…

The SEP and SARSEP accounts, also known as individual retirement accounts (IRAs) or individual retirement annuities, are governed by Section 408(k) of the Internal Revenue Code (IRC). This section outlines…

A 5/6 Hybrid Adjustable-Rate Mortgage (5/6 Hybrid ARM) is a type of mortgage that combines features of both fixed-rate and adjustable-rate mortgages. It typically begins with a fixed interest rate…