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Future Interest |
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Future InterestA present interest, but only a future right to possession and enjoyment of the land, such as a remainder interest, reversionary interest, etc.Future Interest Similar MatchesIncidence of interest calculationIncidence of interest calculationThe frequency that the outstanding interest and ongoing mortgage repayments are calculated. Charging interest on the outstanding balance of your loan at the end of each day, means you reap immediate benefits of any repayments you make, since you will be charged interest on a smaller debt each day. As long as you are making payments on time, the more often interest is calculated the better for you. This is a common feature of flexible mortgages, but is not restricted solely to them. When interest is calculated annually, repayments are not updated to include the reduction in capital that arises from the payments you make throughout the year. Insurable interestInsurable interestA term which means that any person entering into an insurance contract must stand to lose financially following the loss or damage of an insured item, or an insured event. For example a person may insure his/her property and contents since a financial loss would be incurred if damage were to be sustained. Variable Interest RateVariable Interest RateAn interest rate which fluctuates as the prevailing rate moves up or down. In mortgages there are usually maximums as to the frequency and amount of fluctuation. Also called "flexible interest rate." Real interest rateReal interest rateThe nominal interest rate adjusted for inflation, to get the percentage yield an asset holder gets in terms of real resources. Equals the nominal interest rate minus the rate of inflation. Covered interest rateCovered interest rateThe covered interest rate, in a currency other than your own, is the nominal interest rate plus the forward premium on the currency; thus the percent you will earn holding the foreign asset while protecting against exchange-rate change by selling the foreign currency forward. Further SuggestionsInterest equalization taxInterest Covered Interest Rate Parity Interest tax shield Variable interest rate interest receivable Nominal interest rate True interest cost Earnings before interest and, taxes (EBIT) Equilibrium rate of interest Interest only loan Interest equalization tax Interest in Arrears Interest rate simple interest Interest sensitive stock Noninterest bearing note Mortgage interest deduction Export financing interest Effective Interest Rate Capitalized interest interest in possession Gross interest Covered interest arbitrage Cash flow after interest and taxes |
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