Glossary

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Mortgage closing costs

Mortgage closing costs are the fees that you must pay when purchasing a home. These fees cover administration costs for preparing mortgage documents, attorney fees, insurance premiums, taxes, and other expenses. Most homebuyers can expect to pay from 3% to 6% of the total loan amount in closing costs.

Mutual funds

Mutual funds are a type of investment that pools money from numerous shareholders to invest in a variety of securities, such as stocks, bonds and money markets. These funds are an integral part of many investors’ wealth management strategies.

Market value

Market value is the agreed price of a good, service or another type of asset. It can also be used as a financial measure of the value of a company. When you can calculate market value, you have a tool to use to help guide investments, purchases and negotiations.

Money order

A money order is a paper document, similar to personal checks in that the person paying identifies who the money order is payable to and sets the dollar amount. Unlike checks, you must purchase money orders with cash upfront, rather than have the funds come out of your checking account.

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Recent Terms

SEP IRA
A SEP IRA — short for simplified employee pension plan — is a tax-advantaged retirement plan designed for business owners. While it can be used by businesses of any size, it’s often used by small business owners and self-employed individuals.
High earner, not yet rich (HENRY)
HENRY is an acronym for "high earner, not yet rich." It is used to describe someone who earns a high income, usually between $100,000 to $500,000, but has not saved or invested enough to be considered rich. HENRYs typically spend a large portion of their earnings on expenses and purchases.
Non-deductible IRA
A non-deductible IRA is not a type of retirement account. Instead, it refers to non-deductible contributions made to a traditional retirement account. This retirement savings strategy is for those whose income exceeds the limits to make deductible IRA contributions or to contribute to a Roth IRA.