Tag: Debt

  • Mortgage

    Introduction to Mortgage Mortgage, legal instrument that pledges a house or other real estate as security for repayment of a loan. By providing a guarantee that the loan will be paid back, a mortgage enables a person to buy property without having the funds to pay for it outright. If the […]

  • Foreclosure

    Introduction to ForeclosureForeclosure, legal process in which a person who has made a mortgage (the mortgagor) in order to borrow money loses his or her rights to the mortgaged property. A mortgage represents security-generally real estate-for money loaned. The mortgagor retains possession…

  • Mortgage Getting

    Mortgage Getting a MortgageIntroduction to Mortgage GettingA borrower can obtain a mortgage from a bank, credit union, or other lender. Most lenders require the borrower to have a certain amount of money to use as a down payment toward the purchase of the house. For example, if an …

  • Mortgage Repaying

    Mortgage Repaying a MortgageIntroduction to Mortgage RepayingMortgage payments consist of two parts: payments for interest and for principal. Interest is the fee for using the lender's money. Principal is the amount of the loan still owed. A portion of each payment pays interes…

  • How Bonds Work

    How Bonds WorkA bond's principal, or face value, represents the amount of the original loan that is to be repaid on the bond's maturity date. The interest that the issuer agrees to pay each year is known as the coupon, a term derived from the obsolete practice of attaching coupons t…

  • Corporate Bonds

    Bonds in this SectionBondHow Bonds WorkTypes of BondsIssu…

  • Bond Investing

    Investing in BondsFrom an investor's perspective, stocks offer a higher potential return if profits rise, but bonds are generally a safer investment. Stock dividends are paid out of company profits, while bond interest payments are made even if the company is losing money. If a corporat…

  • Bond Issuing

    Issuing BondsBond issuers can sell bonds directly through an auction process or use investment banking services. The investment banker buys the bonds from the issuer and then sells them to the public.Corporate bonds are issued by private utilities, transportation companies, industri…

  • Bond Types

    Kinds of BondsA number of different kinds of bonds offer variations on this basic formula. Some types of bonds provide alternative interest structures. A zero-coupon bond does not make periodic interest payments. The bondholder realizes interest by buying the bond substantially below its fa…

  • Bonds Market

    Bonds in this SectionBondHow Bonds WorkTypes of BondsIssu…