Origination fee

A purpose loan is a debt instrument that's collateralized by security holdings and used to finance the purchase of additional security positions. Purpose loans are subject to Federal Reserve Board restrictions and margin requirements.

Owner financing

Purchase of property where the finance is provided in whole or part by the seller.

One year adjustable

A mortgage whose annual interest rate changes yearly. The rate is chosen by the lender based on the index and margin.

Open house

A means of advertising and marketing the property that is for sale. The real estate agent markets the home by inviting buyers in to see the interior and ask questions without making an appointment.

Open listing

When a property is marketed by several real estate agents looking for a commission on the listed property,

Open-end lease

A lease agreement where the person holding the leased property is obligated to purchase the property at the end of the lease term. May also be called finance lease.

Option

A legal agreement giving someone the rights to sell, buy, or lease the property under certain terms for a specific period.

Options

Features that are added to the car by the dealer. These can be valuable options like a CD player, or add-ons that add no value to the car but add cash to the dealers pocket like undercoating and paint sealant.

Option arm

Adjustable rate mortgages that offer flexibility unavailable in any other loan offer. The borrower is able to choose between loan plans that best fit their needs and financial situations. These are excellent options for people who are self employed or who work on commission because there is some flexibility on how much you pay each month.

Original principal balance

The amount of the original amount of money borrowed.

Obligation

An obligation, in general, is any binding duty or promise. In lending, an obligation is the promise to repay a financial debt. Leaving an obligation unfulfilled usually has legal consequences.

Obligor

Obligor is synonymous with debtor, meaning it's an individual or business that owes money to another party.

Offer in compromise

An offer in compromise is a means of resolving back-due taxes, where the taxpayer makes one payment to the IRS that's less than the amount of the taxes due. The IRS accepts offers in compromise only when it's highly unlikely that the taxpayer will be able to pay off the full balance, even under an installment plan.

Offering

An offering is the issuance of a security, such as stock or bond shares, for purchase by investors. If the security is being issued for the first time, the offering is called an initial public offering or IPO.

Office of Comptroller of the Currency

Office of Comptroller of the Currency, or OCC, is the U.S. entity that regulates national banks and supervises federal branches of foreign banks.

Office of Federal Housing Enterprise Oversight - OFHEO

The Office of Federal Housing Enterprise Oversight, or OFHEO, is the U.S. regulatory entity that supervises Fannie Mae and Freddie Mac. The OFHEO's main task to monitor and support the financial strength of these entities, which is crucial to the strength of the U.S. mortgage industry. OFHEO is also responsible for setting conforming loan limits each year.

Office of Thrift Supervision

Office of Thrift Supervision, or OTS, is a U.S. federal entity that charters and oversees savings and loan banks. The OTS conducts audits and other inspections to ensure that its member banks are in compliance with government regulations.

Offline debit card

An offline debit card is a plastic card that functions like a Visa or MasterCard credit card, but pulls funds from the accountholder's checking account. If the offline debit card carries a Visa logo, for example, it can be used at all merchants who accept Visa credit cards. The descriptor "offline" refers to how the transaction is processed; the purchase amount is not immediately processed through the linked account, but posts one to three days later.

Old Age, Survivors and Disability Insurance Program - OASDI

Old Age, Survivors and Disability Insurance Program, or OASDI, is the formal name for the U.S. Social Security program. OASDI provides retirement and disability income, veteran's pensions, and other public benefits.

On account

On account describes a partial payment that's applied to reduce a debt balance.

One-year adjustable

One-year adjustable describes a debt instrument that experiences an annual interest rate change. Most often, the term is used in reference to mortgage loans, where the interest rate is reset annually in accordance with the movement of an underlying benchmark rate.

One-Year Constant Maturity Treasury - 1-Year CMT

One-year Constant Maturity Treasury, or 1-year CMT, is an index that's published daily by the U.S. Treasury. The index value is calculated by adjusting the yields of recently auctioned U.S. Treasury bills and notes of varying maturities to the equivalent of a one-year yield.

One-Year Treasury Constant Maturity

One-year Constant Maturity Treasury, or 1-year CMT, is an index that is published daily by the U.S. Treasury. The index value is calculated by adjusting the yields of recently auctioned U.S. Treasury bills and notes of varying maturities to the equivalent of a one-year yield.

Online banking

One-year Constant Maturity Treasury, or 1-year CMT, is an index that is published daily by the U.S. Treasury. The index value is calculated by adjusting the yields of recently auctioned U.S. Treasury bills and notes of varying maturities to the equivalent of a one-year yield.

Online bill payment

One-year Constant Maturity Treasury, or 1-year CMT, is an index that is published daily by the U.S. Treasury. The index value is calculated by adjusting the yields of recently auctioned U.S. Treasury bills and notes of varying maturities to the equivalent of a one-year yield.

Online debit card

An online debit card is a plastic card that functions like a Visa or MasterCard credit card, but pulls funds from the accountholder's checking account. If the online debit card carries a Visa logo, for example, it can be used at all merchants who accept Visa credit cards. The descriptor "online" refers to how the transaction is processed; when the accountholder presents the card for purchase, the money is immediately deducted from the linked account.

On-the-spot loan

An on-the-spot loan is an already approved line of credit that allows the borrower to take a draw of funds without additional approval required.

Open access

Open access, also called open panel, describes a health plan that allows the insured to consult another healthcare provider in the insurance network without a referral.

Open mortgage

An open mortgage is a real estate property loan that doesn't have prepayment penalties.

Open panel

Open panel, also called open access, describes a health plan that allows the insured to consult another healthcare provider in the insurance network without a referral.

Open-end credit

An open-end credit is the same thing as a revolving credit line; it's an agreement between a lender and a borrower where the borrower can borrow, pay down, and then re-borrow the funds up to an approved limit.

Open-end mortgage

An open-end mortgage is a real estate property loan that allows the borrower to borrow, pay down, and then re-borrow funds up to an approved debt limit.

Operating lease

An open-end credit is the same thing as a revolving credit line; it's an agreement between a lender and a borrower where the borrower can borrow, pay down, and then re-borrow the funds up to an approved limit.

Optionally renewable

Optionally renewable describes an insurance feature that allows the insurance provider to cancel the policy at certain points in time, such as on the anniversary of the policy effective date.

Oral agreement

An oral agreement is a binding promise or arrangement made without written documentation. From a legal perspective, an oral agreement is difficult to prove. They're also invalid in real estate transactions.

Ordinary annuity

An ordinary annuity is a series of recurring, fixed payments that continue over a specified amount of time.

Ordinary dividends

Ordinary dividends are profit distributions made by a company to its shareholders. The recipient of ordinary dividends must pay taxes on the amounts received.

Ordinary income

Ordinary income is a tax term that describes any income earned other than capital gains. Examples of ordinary income include wages, tips, interest income, and dividend payments.

Ordinary interest

Ordinary interest, also called simple interest, is calculated under the assumption that a year has 360 days.

Ordinary shares

Ordinary shares represent non-preferred ownership rights in a corporation. The owner of an ordinary share, called a shareholder, has voting rights and is entitled to dividends, but only after dividends are paid to the preferred shareholders. If the company is liquidated, ordinary shareholders don't receive proceeds until after bondholders and preferred shareholders have been paid.

Origination

Origination is the series of steps that leads to the funding of a mortgage loan. These steps include application, verification, loan approval, loan preparation, etc.

Origination points

Origination points describe an upfront fee that a borrower pays to a mortgage lender for its role in preparing the loan for funding. Each origination point is equivalent to 1 percent of the loan amount. Origination points are set by the lender, usually based on the borrower's qualifications, and can sometimes be negotiated.

OTS

OTS, or Office of Thrift Supervision, is a U.S. federal entity that charters and oversees savings and loan banks. The OTS conducts audits and other inspections to ensure that its member banks are in compliance with government regulations.

Outpatient

Outpatient is a person receiving healthcare services that doesn't require an overnight stay.

Outstanding

Outstanding describes something that's unsettled. In lending, specifically, the term means unpaid, as in a debt balance.

Overadvance

An overadvance is the funding of debt that will be used by a company to build its inventory prior to a high sales season (such as the winter holidays). Since the debt is taken prior to the expected spike in sales, the loan amount will temporarily exceed the company's accounts receivables balance.

Overcontribution

Overcontribution describes the deposit of funds into a tax-advantaged retirement account that exceeds the annual contribution limit as defined by the taxing authority. Overcontribution can sometimes result in monetary penalties.

Overdraft

Overdraft occurs when drafts or withdrawals exceed an account's available balance of funds. The term is used interchangeably with "insufficient funds." Overdraft can also mean an immediate credit extension, such as when there are insufficient funds in an account and the bank must extend credit to cover pending drafts.

Overdraft annual cost

Overdraft annual cost is the charge that a customer pays for having access to instant credit when a check written on an account exceeds the funds available in the account. If the bank pays the check, the accountholder is essentially borrowing money temporarily. This immediate credit access is an extra service for which most banks charge an annual fee.

Overdraft minimum amount

Overdraft minimum amount is the smallest value that a banking institution will transfer into an account when the available balance isn't sufficient to cover requested withdrawals. An account may, for example, have an overdraft minimum of $25. If the account balance is $100, and a check in the amount of $110 is presented for payment, the bank will advance the accountholder $25, rather than just the $10 overage.

Overdraft protection

Overdraft protection is a service offered on checking accounts. When a customer has it, the banking institution will pay presented checks, even if the funds available in the account aren't sufficient to cover the check amount. There's usually a fee associated with overdraft protection, as well as a per-check fee, when an overdraft situation occurs.

Overlay

Overlay is a comprehensive asset management style that has the goal of eliminating inefficient exposures that can occur when an investor has more separately managed accounts. The overlay system looks at the investor's holdings holistically, across all accounts, to identify overexposures and inefficient transactions.

Overlying mortgage

An overlying mortgage is a second mortgage, characterized by having a subordinate claim to the first mortgage on the same piece of real estate property.

Over-the-limit fee

Over-the-limit fee is an assessment charged by a credit card company when a credit card holder exceeds his approved credit limit.

Owe

To owe is to have an obligation to pay or repay.