Finance Definitions and Topics

the personal finance blog

What Are Fractional Shares and Dividend Reinvestment Plans (DRIPs)

A fractional share is when there is less than a full share of stock owned. This happens with dividend reinvestments and stock splits.

Should You Make Biweekly Mortgage Payments?

Many mortgage companies have a biweekly payment plan to make 13 payments each year. This can you save thousands of dollars interest.

What is an Emergency Fund

When it comes to financial planning one key component is to have an emergency fund. This differs from a rainy-day fund which is for...

The 2008 Financial Crisis

The 2008 Financial Crisis was due to mortgage defaults, MBOs, CDOs. AIG needed a government bailout to pay claims and avoid financial ruin

Loan-to-value (LTV)

Loan-to-value (LTV) is what lenders measure when a borrower buys or refinances a home. The higher the risk, the higher the interest rate.

What Is a Nest Egg?

A nest egg is a sum of money and other assets that are saved or invested for the future that is typiclly tied to retirement planning.