Related Words

Purchase Money Loan: A loan for the purpose of purchasing a home.

Portfolio Loan: A loan originated and maintained by the lender and not sold in the secondary mortgage market.

Policy Loan: A loan often made at a below-market interest rate from an insurance company to a policyholder that is secured by the cash surrender value of a life insurance policy.

Policyholder Loan Bonds: Packaged loans acquired by policyholders that are secured by the cash surrender value of the policies, and are offered by a broker/dealer as bonds.

Precautionary Demand (For Money): The need to meet unexpected or extraordinary contingencies with a buffer stock of cash.

Project Loan Certificate (PLC): A primary program of Ginnie Mae for securitizing FHA-insured and coinsured multifamily, hospital, and nursing home loans.

Prime Loan: A loan offered to borrowers with better credit history (sometimes called 'A' loans). Prime loans generally are priced lower and cost the borrower less.

Piggyback Loans: A loan divided into two parts with one lender taking a secondary security position.

Periodic Purchase Deferred Contract: A fixed or variable annuity contract for which fixed-amount premiums are paid either monthly or quarterly, and that does not begin paying out until a time elected by the annuitant.

Out-Of-The-Money Option: A call option is out of the money if the strike price is greater than the market price of the underlying security. That is, you have the right to purchase a security at a price higher than t . . . View Full Definition