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
What Is the Resource Curse? The term resource curse refers to a paradoxical situation in which a country underperforms economically, despite being home to valuable natural resources. A resource curse is generally caused by too much of the country’s capital and labor force concentrated in just a few resource-dependent industries. By failing to make adequate investments
What Is a Registered Education Savings Plan? A Registered Education Savings Plan (RESP), sponsored by the Canadian government, encourages investing in a child’s future post-secondary education. Subscribers to an RESP make contributions that build up tax-free earnings. The government contributes a certain amount to these plans for children under age 18. Contributors do not receive
What Is Response Lag? Response lag, also known as impact lag, is the time it takes for monetary and fiscal policies, designed to smooth out the economic cycle or respond to an adverse economic event, to affect the economy once they have been implemented. Learn more about response lag and the timeframe before policy changes
