Redemption

 

Home
Site Map
Add Term
Search
About Us
Contributors

Redemption

The process of canceling a defeasable title to land, such as is created by a mortgage foreclosure or tax sale.

Redemption

This is the right of the mortgagor to recover mortgaged property on repayment of the loan and any interest due. This legally means that once you as the borrower have finished repaying the mortgage you took out, the property is yours and the lender has no further claim on it. If you pay of the mortgage ahead of schedule you may face a redemption penalty which compensates the lender for loss of interest.

Redemption

The re-purchase of a security, such as a bond or preferred stock, by the issuing company at or before maturity.

Redemption

Repayment of a debt security or preferred stock issue, at or before maturity, at par or at a premium price.



Redemption

Similar Matches

Serial redemption

Serial redemption

The redemption of a serial bond.


Redemption Period

Redemption Period

A time period during which a mortgage, landcontract, deed of trust, etc., can be redeemed. Usually set by statute, and after judicial foreclosure.


Redemption penalty overhang

Redemption penalty overhang

This is where the redemption penalty continues beyond a fixed or capped rate period, effectively tying you in to the much higher variable rate for a period of time after the fixed or capped period. As a result you get stuck paying an uncompetitive rate that eats into the gains you may have made from having the fixed rate or capped ratein the first place.


Redemption penalties

Redemption penalties

Charges paid to the lender in compensation for lost interest if you redeem your mortgage ahead of schedule. During a discount period you will be severely penalised if you try to switch to another product or mortgage provider. Penalties can be stepped just like discounts, and can be particularly severe within the first year. This is to ensure that the costs that the lender endures in setting up the mortgage are always covered. Penalties can be a fixed sum of money, though are often proportion of the loan. With cashback mortgages, you often have to repay the amount of money you received as cashback.


Redemption statement

Redemption statement

The outstanding amount to be repaid on an existing mortgage. Redundancy insurance Another form of income protection, but one that does not cover any form of sickness, injury or disability. The purpose of this type of policy is to replace income lost through a short to medium term period of redundancy. It provides you with a monthly tax-free income to cover a portion of your lost earnings. It is often sold in conjunction with the accident, sickness and disability element of income protection policies, in which case it is known as Accident, Sickness and Unemployment (ASU).


Further Suggestions

Right of redemption
Overhanging redemption penalty
Redemption fee
Mandatory redemption schedule
redemption fees
redemption price
Extended redemption penalty
right of redemption
gross redemption yield
Redemption cushion
Redemption charge
redemption yield
redemption date
Redemption date
Redemption price
Preferred equity redemption stock (PERC)


 
All rights Reserved. Do not copy without permission.