- Residual Income
- The amount of income that an individual has after all personal debts, including the mortgage, have been paid. This calculation is usually made on a monthly basis, after the monthly bills and debts are paid. Also, when a mortgage has been paid off in its entirety, the income that individual had been putting toward the mortgage becomes residual income.
Residual income is often an important component of securing a loan. The loaning institution usually assesses the amount of residual income an individual has left after paying off other debts each month. If the individual requesting the loan has sufficient residual income to take on additional debt, the loaning institution will be more likely to grant the loan because having an adequate amount of residual income will ensure that the borrower has sufficient funds to make the loan payment each month.
Investment dictionary. Academic. 2012.
Look at other dictionaries:
residual income — residual return The net income that a subsidiary undertaking or division of an organization generates after being charged a percentage return for the book value of the net assets or resources deemed to be under its control. The residual income… … Accounting dictionary
residual income — UK US noun [C or U] FINANCE, ACCOUNTING ► income that a person, company, or organization has left after they have paid taxes, debts, etc.: »Pension payments reduce residual income for tax purposes. ► (also residuals [plural]) money that a writer… … Financial and business terms
residual income — residual return The net income that a subsidiary undertaking or division of an organization generates after being charged a percentage return for the book value of the net assets or resources deemed to be under its control. The headquarters or… … Big dictionary of business and management
Остаточная прибыль (RESIDUAL INCOME) — Средство измерения результатов деятельности центра инвестиций, которое фокусируется на ответственности за получение прибыли и на эффективности финансового управления, проводимого руководителем центра инвестиций. Остаточная прибыль обычно… … Словарь терминов по управленческому учету
residual return — residual income … Accounting dictionary
residual — the pre agreed estimated value at the end of a leasing period of an item subject to a leasing agreement. Glossary of Business Terms (1) For sequential pay CMO structures, a residual tranche is the CMO tranche that receives the excess cash flow… … Financial and business terms
Residual Interest Bonds - RIBS — A type of inverse floating rate bond created by dividing the income from a municipal bond into two portions. The municipal bondholder will create two new securities: a primary direct floating rate bond and a residual inverse floating rate bond.… … Investment dictionary
income — money that is being earned by the business. Glossary of Business Terms * * * income in‧come [ˈɪŋkʌm, ˈɪn ] noun 1. [countable, uncountable] money that you earn from your job or that you receive from investments: • The family pays more than 50% of … Financial and business terms
residual — re|sid|u|al [rıˈzıdʒuəl] adj [only before noun] formal remaining after a process, event etc is finished ▪ the residual effects of drug treatment residual income (=the money left from what you earn after you have paid your taxes) … Dictionary of contemporary English
residual — adjective (only before noun) formal remaining after a process, event etc is finished: There was still some residual unrest after the rebellion had been crushed. | residual income (=the money left from what you earn after you have paid your taxes) … Longman dictionary of contemporary English