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Wages paid to state or local government employees are not subject to FUTA, the Federal Unemployment tax.

You use the current year Form 940 to amend a return that you previously filed in the current year. If you are amending a return for a previous year, use the previous year's Form 940. Follow these steps: Use a paper return to amend a Form 940 filed under an electronic filing program. Check the amended return box in the top right corner of Form 940, page 1, box a, Fill in all the amounts that should have been on the original form. Sign the form .Attach an explanation of why you are amending your return. File the amended return using the Without a payment address (even if a payment is included) under Where Do You File? On page 2.

If you receive Form 940-EZ and are not liable for FUTA Federal Unemployment Tax in the current year, then write "Not Liable" across the front of the form. Sign the form and return it to the IRS.

A Biweekly Mortgage requires payments every two weeks instead of the standard monthly payment. The 26 biweekly payments are each equal to one-half of the monthly payment. For the borrower, it is a substantial reduction in interest payments because the mortgage is paid off earlier.

A Balloon mortgage has regular monthly payments which amortize over a stated term, but it also calls for a final balloon payment or lump sum at the end of a specified term, or maturity date, such as 15 years.

A loan that "bridges" the gap in time between the purchase of a new residence and the sale of the borrower's current residence. The borrower's current residence is used as collateral and the money is used to close on the new residence before the current residence is sold. Some are structured so they completely pay off the old residence's first mortgage at the closing of the bridge loan, while others add on the new debt on top of the old debt. A bridge loan usually runs for a term of four to eight months.

A mortgage amortization schedule is a timetable for the periodic repayment of a mortgage loan. An amortization schedule indicates the amount of each payment that is applied to interest and principal. It also indicates the remaining balance after each payment is made.

The buydown option is a process of trading money for a lower mortgage interest rate. The borrower "buys down" the interest rate on a mortgage by paying additional discount points up front.
It is also a mortgage in which an initial, lump-sum payment is made to temporarily reduce a borrower's monthly payments during the first few years of a mortgage.

The mortgage debt to income ratio is the percentage of a person's monthly earnings used to pay off all debt obligations. Lenders usually consider two ratios when making a loan. The ratios are constructed in different ways. The first is called the front-end ratio. It is the ratio of the monthly housing expenses including principal, interest, property taxes and insurance and that amount is compared to the borrower's gross monthly income. The second is called the back-end ratio. It is when a borrower's other debts, such as auto loans and credit cards are taken into account. Lenders usually look at both ratios to determine an acceptable ratio. Some lending institutions take into account only the back-end ratio.

The mortgage loan to value ratio is the ratio of the mortgage loan amount to the property's appraised value or sales price, whichever is less. An example of this is if a residence is sold for $200,000 and the mortgage amount is $150,000, the house has a 75 percent loan to value ratio.