What Is a Home Equity Loan? A home equity loan—also known as an equity loan, home equity installment loan, or second mortgage—is a type of consumer debt. Home equity loans allow homeowners to borrow against the equity in their homes. The loan amount is based on the difference between the home’s current market value and the
What Is a Home Inspection? A home inspection observes and reports on the condition of a real estate property, usually when it is on the market to be sold. A qualified home inspector assesses the property’s condition, including its heating and cooling systems, plumbing, electrical work, water, and sewage, as well as some fire and
What Is a High-Yield Bond Spread? A high-yield bond spread is the percentage difference in current yields of various classes of high-yield bonds compared against investment-grade corporate bonds, Treasury bonds, or another benchmark bond measure. Spreads are often expressed as a difference in percentage points or basis points. The high-yield bond spread is also referred
What Is Hindsight Bias? Hindsight bias is a psychological phenomenon that allows people to convince themselves after an event that they accurately predicted it before it happened. This can lead people to conclude that they can accurately predict other events. Hindsight bias is studied in behavioral economics because it is a common failing of individual
What Is the Health Insurance Portability and Accountability Act (HIPAA)? The Health Insurance Portability and Accountability Act (HIPAA) is an act created by the U.S. Congress in 1996 that amends both the Employee Retirement Income Security Act (ERISA) and the Public Health Service Act (PHSA). HIPAA was enacted in an effort to protect individuals covered
What Is a Hire Purchase Hire purchase is an arrangement for buying expensive consumer goods, where the buyer makes an initial down payment and pays the balance plus interest in installments. The term hire purchase is commonly used in the United Kingdom and it’s more commonly known as an installment plan in the United States.
What Is a Hiring Freeze? A hiring freeze is when an employer stops hiring workers, usually temporarily, in an effort to contain costs. Such cost-cutting may be the result of financial distress, but even large, successful companies may opt to pause hiring amid an economic slowdown, recession or instances of overcapacity. Hiring freezes may be
What Is a Histogram? A histogram is a graphical representation of data points organized into user-specified ranges. Similar in appearance to a bar graph, the histogram condenses a data series into an easily interpreted visual by taking many data points and grouping them into logical ranges or bins. Key Takeaways A histogram is a bar
What Is a Historical Cost? A historical cost is a measure of value used in accounting in which the value of an asset on the balance sheet is recorded at its original cost when acquired by the company. The historical cost method is used for fixed assets in the United States under generally accepted accounting
What Are Historical Returns? Historical returns are often associated with the past performance of a security or index, such as the S&P 500. Analysts review historical return data when trying to predict future returns or to estimate how a security might react to a particular situation, such as a drop in consumer spending. Historical returns
