Investopedia

Continue to Site »

Interest Shortfall

Filed Under » ,
Dictionary Says

Definition of 'Interest Shortfall'

Any interest that has not been paid after the loan payments have been paid. An interest shortfall occurs when the loan accrues interest that has not been figured into the actual immediate payment. Adjustable-rate mortgages have interest shortfalls if their payments or interest rates are capped, leading to negative amortization.
Investopedia Says

Investopedia explains 'Interest Shortfall'

An interest shortfall can be a serious matter for homeowners who do not want their loans to go into negative amortization, and an extra mortgage payment or two may be necessary in order to prevent this. Most mortgages have limits on the amount of interest shortfall they can accept as protection for both borrower and lender.

Articles Of Interest

  1.

    How To Invest When You're Deep In Debt

    Debt is one of the biggest obstacles that prevents people from investing - but it shouldn't be.

  2. Analyzing Retail Stocks

    To analyze retail stocks, investors need to be aware of the most common metrics used. Find out what they are.

  3. Will Your Retirement Income Be Enough?

    Find out how to determine whether you're on the path to a comfortable retirement, or financial ruin.

  4. The Investing Risk Of Underfunded Pension Plans

    Determine the risk to a company's EPS and financial condition resulting from an underfunded pension plan.

  5. Short Interest: What It Tells Us

    This figure can be a real eye-opener about the market sentiment surrounding a given stock.

  6. Interest Rates And Your Bond Investments

    By understanding the factors that influence interest rates, you can learn to anticipate their movement and profit from it.

  7. Home-Equity Loans: The Costs

    Learn the factors to consider when comparing the different programs offered by various lenders.

  8. Forces Behind Interest Rates

    Get a deeper understanding of the importance of interest rates and what makes them change.

  9. How To Evaluate Pension Risk By Analyzing Annual Costs

    Learn how to assess whether a company's pension plan is posing more risks than what the footnotes indicate.

  10. Depreciation: Straight-Line Vs. Double-Declining Methods

    Appreciate the different methods used to describe how book value is "used up".
comments powered by Disqus
Marketplace
Hot Definitions

  1. Glocalization

    A combination of the words "globalization" and "localization" used to describe a product or service that is developed and distributed globally, but is also fashioned to accommodate the user or consumer in a local market.

  2. Disaster Loss

    A special type of tax-deductible loss, similar to a casualty loss, where a loss has been incurred by taxpayers who reside in an area that has been designated as a federal disaster area by the President.

  3. Fool In The Shower

    The notion that changes or policies designed to alter the course of the economy should be done slowly, rather than all at once.

  4. Pattern Day Trader

    An SEC designation for traders who trade the same security four or more times per day (buys and sells) over a five-day period, and for whom same-day trades make up at least 6% of their activity for that period.

  5. Cost-Push Inflation

    A phenomenon in which the general price levels rise (inflation) due to increases in the cost of wages and raw materials.

  6. Happiness Economics

    The formal academic study of the relationship between individual satisfaction and economic issues, such as employment and wealth.
Trading Center
Array ( )
taggroups(for debug only):
Array ( [0] => Credit & Loans [1] => What's New [2] => Home Ownership [3] => Home Ownership Family [4] => Health And Home [5] => Personal Finance [6] => SEG (Real Estate Shoppers) [7] => SEG (Real Estate Shoppers:Loan-Mortgage) ) time:16ms