Interest Shortfall

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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.
Search results for

'Interest Shortfall'

  • How To Evaluate Pension Risk By Analyzing Annual Costs

    http://www.investopedia.com/articles/analyst/03/081303.asp
    ... assess whether or not a company's pension exhibits a high risk of shortfall ... to examine
    the real annual costs of a pension plan, namely service and interest costs ...

  • Student Borrowing: University Payment Plans Vs. Federal Student ...

    http://www.investopedia.com/articles/younginvestors/11/university-payment-plans-vs-student-loans.asp
    ... loans at the beginning of the year, but experience a budget shortfall, you can still
    borrow private loans. However, you will forgo the fixed-interest rates. ...

  • CFA Level 1 Study Guide - Quantitative Methods - Confidence ...

    http://www.investopedia.com/exam-guide/cfa-level-1/quantitative-methods/confidence-intervals.asp
    ... 2.2 What Is The Time Value Of Money? 2.3 The Five Components Of Interest Rates;
    2.4 Time Value Of Money Calculations; 2.5 Time Value Of Money Applications; ...

  • Top 3 Retirement Savings Tips For 55- To 64-Year-Olds

    http://www.investopedia.com/articles/retirement/06/tips55to64.asp
    ... will help you to determine whether you have a projected shortfall and whether you ...
    $79,914 over a 20-year-period, assuming a daily compounded interest rate of 4 ...

  • Online Brokers' Tough Quarter Could Get Tougher

    http://stocks.investopedia.com/stock-analysis/2010/Online-Brokers-Tough-Quarter-Could-Get-Tougher-IBKR-SCHW-AMTD-ETFC-TRAD0428.aspx
    ... Number Don't Lie If it were just one shortfall from an online trader last quarter,
    it might be dismissible ... The second sore spot for brokers is low interest rates ...

  • An Introduction To Perkins Loans

    http://www.investopedia.com/articles/younginvestors/11/everything-you-need-to-know-perkins-loans.asp
    ... The schools will be reimbursed for this shortfall by the Federal government with
    the ... however, you will be required to pay the loan back with 5% interest. ...

  • The Investing Risk Of Underfunded Pension Plans

    http://www.investopedia.com/articles/analyst/03/050803.asp
    ... serious consequences, ranging from higher interest rates to bankruptcy. That was
    the simple part. Now it starts to get complicated. Shortfall Risk Determining ...

  • Your First Checking Account

    http://www.investopedia.com/articles/younginvestors/07/checking_account.asp
    ... The difference is that while the larger account is earning enough interest for the ...
    The bank makes up for this shortfall by charging fees when customers fail to ...

  • CFA Level 1 Study Guide - Fixed Income Investments - Importance of ...

    http://www.investopedia.com/exam-guide/cfa-level-1/fixed-income-investments/reinvestment-income-reinvestment-risk.asp
    ... 2.2 What Is The Time Value Of Money? 2.3 The Five Components Of Interest Rates;
    2.4 Time Value Of Money Calculations; 2.5 Time Value Of Money Applications; ...

  • Cut Your Tax Bill

    http://www.investopedia.com/articles/pf/07/save-on-taxes.asp
    ... bill at the end of the month, remember that you will be paying interest on your ... way
    to cut your tax bill is to prepay your projected state tax shortfall if you ...

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