What Is the Reserves-to-Production Ratio? The reserves-to-production ratio is an estimate of the number of years that the site of a natural resource will continue to be productive based on current production rates. The ratio is used to forecast many business factors such as the total income that can be expected to be earned from the source
What Is a Reset Date? A reset date is a point in time when the initial fixed interest rate on an adjustable-rate mortgage (ARM) changes to an adjustable rate. This date is commonly one to five years from the start date of the mortgage. After the initial reset date, the interest rate becomes variable and
What Is the Reset Margin? The reset margin is the difference between the actual interest rate of a loan or debt security and the index upon which its interest rate is based. The reset margin will always be positive, as it is added to the underlying index or reference rate. For instance, the reset margin
What Is a Reset Rate? A reset rate is the new interest rate that a borrower must pay on the principal of a variable interest rate loan when a scheduled reset date occurs. The lender will provide details on a loan’s reset terms and interest rate calculations in the borrower’s credit agreement. Key Takeaways A
What Is a Resident Alien? A resident alien is a foreign-born United States resident who is not an American citizen. A resident alien is also known as a permanent resident or a lawful permanent resident, which means they are considered an immigrant who has been legally and lawfully recorded as a resident of the country.
What Is Residential Rental Property? Residential rental property refers to homes that are purchased by an investor and inhabited by tenants on a lease or other type of rental agreement. Residential property is property zoned specifically for living or dwelling for individuals or households; it may include standalone single-family dwellings to large, multi-unit apartment buildings.
What Is Residual Income? Residual income is the money that continues to flow after an initial investment of time and resources has been completed. Examples of residual income include artist royalties, rental income, interest income, and dividend payments. The term residual income is used in other contexts: In personal finance, residual income can refer to
What Is Residual Interest? The term residual interest refers to the interest that may accrue on an interest-bearing account like a credit card, loan, line of credit, or mortgage. Credit card residual interest is normally charged on balances incurred between billing cycles. In this case, it may also be referred to as trailing interest. The
What Is Residual Standard Deviation? Residual standard deviation is a statistical term used to describe the difference in standard deviations of observed values versus predicted values as shown by points in a regression analysis. Regression analysis is a method used in statistics to show a relationship between two different variables, and to describe how well
What Is Residual Value? The residual value, also known as salvage value, is the estimated value of a fixed asset at the end of its lease term or useful life. In lease situations, the lessor uses the residual value as one of its primary methods for determining how much the lessee pays in periodic lease
