What does Capitalization mean?

This is a method of evaluating the value of a property or business by dividing its net income by a specific rate of return. The resulting figure is known as the capitalization rate, and it is used to estimate the value of the property or business based on the income that it is expected to generate.

Related Terms

Discount Points Property Tax Secured Loan Conventional Loan Errors and Omissions Insurance Tract Home Fixed-rate mortgage Acknowledgment FHA loan Negative Amortization Modification Home Rule Building Moratorium Buyer's Market Construction Loan Replacement Reserve Fund Actual Age Accelerated Depreciation