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GLOSSARY
Secured debt
Secured debt is a loan that's supported by collateral. Mortgages are secured, because the lender takes a lien on the property, and has the right to foreclose in a default situation. Auto loans are also secured, because the lender takes a lien on the vehicle.
Secured loan
A loan covered by a security, guarantee or collateral
Securities lending
Securities lending is the practice of loaning securities positions. A broker might wish to borrow securities (rather than buy them) to cover a short position without impacting the stock value. These loans are usually supported by cash collateral.
Security
Property which is designed and used as collateral.
Security deposit
An amount, often one month's payment, the dealer holds to be sure that the car will be returned in good condition.
Security freeze
Security freeze, also called a credit freeze, is the temporary blocking of an individual's or business's debt payment history as maintained by a credit agency. The freeze blocks all access to the specified credit report and score, in order to prohibit the opening of new credit accounts under that identity.
Security interest
Security interest is a lender's/creditor's ownership stake in a property that's taken in support of a debt obligation.
Security loan
Security loan is a debt that's supported by collateral. The lender receives an ownership stake in the collateral that allows for seizure of the property if the borrower defaults.
Self employed borrower
When a person is self employed, they may be looking for a type of mortgage that will let them be flexible in the amount of the payments from month to month. Many mortgage companies will work with someone in this situation to find a mutually agreeable mortgage situation.
Self-amortizing loan
A self-amortizing loan is structured so that the sum of all the payments equals the total interest and amount borrowed. If all payments are made as scheduled, the debt balance will be zero at maturity. Traditional mortgages are self-amortizing, for example. Adjustable-rate loans can also be self-amortizing, but the payment amount will change with any changes to the interest rate.
Self-amortizing mortgage
A self-amortizing mortgage is a real estate property loan that's paid off at maturity, as long as all payments are made as scheduled. Normally this would be a fixed-rate mortgage, but adjustable-rate mortgages can be self-amortizing also. In a fixed-rate structure, the payment amount would be fixed; an adjustable-rate mortgage would have a fluctuating payment amount.
Self-directed IRA
Self-directed IRA is a tax-advantaged retirement savings program that puts the responsibility for investment decisions on the account owner. A self-directed IRA allows the account owner to invest in other asset classes (such as real estate) besides securities. The IRS requires a trustee or custodian to hold the assets.
Self-employed person
Someone who does not work for anyone else and who is running their own business, or trade and is the sole proprietor.
Self-employment tax
Self-employment tax is the Social Security and Medicare contribution that's required from self-employed taxpayers. These contributions are normally withheld from the taxpayer's paycheck; self-employed taxpayers don't receive a paycheck, so they're assessed these taxes separately.
Seller broker
One who earns a commission from the seller of a property in exchange for finding a buyer and assisting in the negotiations.