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Financial Lexicon

Financial & Actuarial Glossary (A-Z)

Authoritative definitions of core economic, mortgage, and insurance terminology curated by lodhi.net quantitative analysts.

Amortization

Mortgages

The process of gradually paying off a debt through scheduled periodic payments over time. Each payment is split between interest expense and principal reduction.

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Basis Point (bps)

Investing

One hundredth of one percentage point (0.01% or 0.0001). Used frequently in finance to express percentage changes in interest rates and bond yields.

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Insurance Deductible

Insurance

The predetermined out-of-pocket monetary amount that an insured policyholder must pay before insurance coverage initiates claim payouts.

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Debt-to-Income (DTI) Ratio

Mortgages

A personal finance metric comparing total monthly debt service obligations against gross monthly income, utilized by lenders to assess creditworthiness.

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