What Is a Mortgage Rate Lock Float Down? The term mortgage rate lock float down refers to a financing option that locks in the interest rate on a mortgage with the option to reduce it if market rates fall during the lock period. A typical rate lock provides a borrower with security against an increase
What Is a Mortgage-Backed Revenue Bond? A mortgage-backed revenue bond is a debt security, usually issued by a municipality, that is used to fund low-rate mortgages. The coupon payments of the bond come from the interest payments on the mortgages that the bonds are used to fund. Key Takeaways A mortgage-backed revenue bond is a
What Is a Money Market Account (MMA)? The term money market account (MMA) refers to an interest-bearing account at a bank or credit union. Sometimes referred to as money market deposit accounts (MMDA), money market accounts have some features that are not found in other types of accounts. Most money market accounts pay a higher
What Is a Money Market Fund? A money market fund is a kind of mutual fund that invests in highly liquid, near-term instruments. These instruments include cash, cash equivalent securities, and high-credit-rating, debt-based securities with a short-term maturity (such as U.S. Treasuries). Money market funds are intended to offer investors high liquidity with a very
What Is Money on the Sidelines? Money on the sidelines is cash that is held either in savings or in low-risk, low-yield investment vehicles, such as certificates of deposits (CDs), instead of being placed in investments that have the potential for greater rewards. Investments with higher yields often include stock or bond market products. Key Takeaways
What Is a Money Order? A money order is a certificate, usually issued by a government or banking institution, that allows the stated payee to receive cash on demand. A money order functions much like a check, in that the person who purchased the money order may stop payment. Money orders are readily accepted and
A money purchase plan is an employee retirement benefit plan that resembles a corporate profit-sharing program. An employer deposits a percentage of a participating employee’s salary in the account every year, but the employee is not permitted to contribute to the fund. However, they can choose how to invest the money based on options offered
What Is the Money-Weighted Rate of Return? The money-weighted rate of return (MWRR) is a measure of the performance of an investment. The MWRR is calculated by finding the rate of return that will set the present values (PV) of all cash flows equal to the value of the initial investment. The MWRR is equivalent
What Is Money Zero Maturity? Money of zero maturity (MZM), which represents all money that is readily available, is a measure of the liquid money supply within an economy. It includes money as cash in hand or money in a checking account, for example. Money in a bank CD would not be counted, however, because it
What Is Monoline? Monoline is when a firm or individual specializes in a single line or discipline of the financial services business. It is often used to describe a company operating in only one industry segment, product, or service. Common monoline examples would include companies that only deal with credit cards, mortgages, or whole life
