|
|
Equity floor |
|
|
|
 Home Site Map Add Term Search About Us Contributors |
Equity floorAn agreement in which one party agrees to pay the other at specific time periods if a specific stock market benchmark falls below a predetermined level.Equity floor Similar MatchesCost of equityCost of equityThe required rate of return for an investment of 100% equity. Equity release schemeEquity release schemeA scheme designed to allow homeowners to 'release' cash from the value of their property. They come in two varieties:Home income plansHome reversion schemesWith either type, you can choose to receive the equity as income, as a lump sum or as a mixture of both.Schemes offered by financial institutions vary considerably and, as always, it is important to look at the small print. Some schemes are only available to people over 70, while others are suitable for younger homeowners with longer life expectancies.Safe Home Income Plans (SHIP) is a self-regulatory body that was formed in 1991 to promote fairer schemes after thousands of elderly homeowners were left with large losses in the late Eighties. SHIP can be contacted on 01242 539 494. Growing Equity Mortgage (gem)Growing Equity Mortgage (gem)A fixed rate, graduated payment loan allowing low beginning payments and a shorter term because of higher payments as the loan progress. Based on the theory of increasing income by the buyer and, therefore. ability to make higher future payments. When state law applies, usury laws in some states may not presently allow such loans when less than interest only payments create interest on interest. Negative equityNegative equityA situation where the purchaser of a property has taken out a mortgage and some time after the purchase, the value of the property falls below the mortgage amount. For example:Purchase price of property: £80,000Deposit: £10,000Mortgage: £70,000If the value of the property falls below £70,000, the mortgage holder has negative equity in the property. Debt/equity swapDebt/equity swapAn exchange of debt for equity, in which a lender is given a share of ownership to replace a loan. Used as a method of resolving debt crises. Further SuggestionsEquitygeneral personal equity plan Equity release Equity linked Eurobonds Equity kicker personal equity plan Deferred equity Return on equity (ROE) Equity linked policies Salomon Brothers World Equity Index (SBWEI) Registered equity market maker equity risk premium Carrot equity debt to equity ratio Leveraged equity Growing Equity Mortgage (GEM) Prices (of equity) Top down equity management style Tax Equity and Fiscal Responsibility Act of 1982 (TEFRA) equity options Equity funding high equity All equity rate Non Equity Option Equity options |
|
|
|