|
|
Direct Reduction Mortgage |
|
|
|
 Home Site Map Add Term Search About Us Contributors |
Direct Reduction MortgageAn amortized mortgage. One on which principal and interest payments are paid at the same time (usually monthly) with interest being computed on the remaining balance.Direct Reduction Mortgage Similar MatchesReduction Option Loan (ROL)Reduction Option Loan (ROL)A hybrid of a fixed-rate and adjustable-rate mortgage. An ROL the borrower to match the current mortgage rate, which then becomes fixed for the rest of the term. This reduction is usually allowed if rates drop more than 2% in a year. Tax Reduction StrategyTax Reduction StrategyA source of competitive advantage that depends on differences in the tax rates imposed in different locations. Concertina tariff reductionConcertina tariff reductionThe reduction of a country's highest tariff to the level of the next highest, followed by the reduction of both to the level of the next highest after that, and so forth. Also called the concertina rule. This is known to raise welfare if all goods are net substitutes. Salary reduction planSalary reduction planA plan allowing employees to contribute pre-tax income to a tax-deferred retirement plan. Salary Reduction Simplified Employee Pension Plan (SARSEP)Salary Reduction Simplified Employee Pension Plan (SARSEP)A low-cost, no-frills version of a 401(k) employee savings plan available to companies with 25 or fewer employees. It allows employees to make pretax contributions to their IRAs through salary reduction each year. The Small Business Job Protection Act of 1996 ../../finance-glossary/d SARSEPs with SIMPLE (Savings Incentive Match Plan for Employees) plans. Existing SARSEPs were allowed to add new participants, but new plans could not be formed after December 31, 1996. Further Suggestionssalary reduction plan |
|
|
|