What Are Household Expenses? Household expenses represent a per-person breakdown of general living expenses. They include the amount paid for lodging, food consumed within the home, utilities paid, and other costs. The sum of all the expenses is then divided by the number of family members residing in the house in order to find each
What Is a House Maintenance Requirement? A house maintenance requirement is the level of minimum margin account equity that is required by a brokerage firm. House maintenance requirement levels are based on the standards set out in Regulation T of the Federal Reserve. Although Regulation T specifies the minimum maintenance requirements permitted by law, brokerage
What Is House Poor? “House poor” is a term used to describe a person who spends a large proportion of his or her total income on homeownership, including mortgage payments, property taxes, maintenance, and utilities. Individuals in this situation are short of cash for discretionary items and tend to have trouble meeting other financial obligations, such as vehicle payments.
What Is the House Price Index (HPI)? The House Price Index (HPI) is a broad measure of the movement of single-family property prices in the United States. Aside from serving as an indicator of house price trends, it also functions as an analytical tool for estimating changes in the rates of mortgage defaults, prepayments, and
What Is a House Swap? A house swap, or home swap, is a temporary exchange of homes. It allows two people or families to enjoy a change of scenery with all the amenities of a home and without the costs and fees of a hotel. House swaps are most commonly sought for vacation stays but
What Is a Housing Bubble? A housing bubble, or real estate bubble, is a run-up in housing prices fueled by demand, speculation, and exuberant spending to the point of collapse. Housing bubbles usually start with an increase in demand, in the face of limited supply, which takes a relatively extended period to replenish and increase.
What Is a Housing Expense Ratio? A housing expense ratio is a ratio comparing housing expenses to pre-tax income. Lenders often use it in qualifying borrowers for loans. A housing expense ratio may also be referred to as a front-end ratio. Key Takeaways The housing expense ratio is used to evaluate a borrower’s credit profile
What Are Housing Authority Bonds? Housing authority bonds, or housing bonds, are issued by a state or local government agency to help finance the construction or rehabilitation of affordable rental housing. Under certain programs, the proceeds from such bonds also may be used to help low-income people purchase homes. The interest earned by investors on
What Is Homemade Leverage? Homemade leverage is used by an individual investor to artificially adjust the leverage of a company. An individual investing in a company with no leverage can recreate the effect of leverage using homemade leverage, which includes taking out personal loans on the investment. However, differences in the tax rate between the
What Is a Home Mortgage? A home mortgage is a loan given by a bank, mortgage company, or other financial institution for the purchase of a residence—a primary residence, a secondary residence, or an investment residence—in contrast to a piece of commercial or industrial property. In a home mortgage, the owner of the property (the
