Glossary

Umm... English please.
We realize some of these industry terms are pretty confusing. Please enter a word (or partial word) or click a letter to view an alphabetical listing of terms.
A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
A
  • Acceleration Clause
    A term in a mortgage agreement that requires the borrower to pay off the loan immediately under certain conditions.
  • Accrued Interest
    The amount of mortgage interest that has been earned but not yet paid.
  • Adjustable Rate Mortgage (ARM)
    A mortgage with an interest rate that can change during the term of the loan. The timing and calculation of adjustments (also called resets) are determined by the loan program, and these details are disclosed in the mortgage documents.
  • Adjustment Interval
    The time between interest rate adjustments of an adjustable rate mortgage (ARM).
  • Amortization
    Amortization is the gradual reduction of a debt by regular scheduled payments of interest and principal.
  • Annual Fee
    A credit card issuer may charge you a fee each year for your account.
  • Annual Income
    This is the combined annual income for you and your co-borrower.
  • Annual Percentage Rate
    The cost of credit, including the interest and fees, expressed as an interest rate. APR was created to make it easier for consumers to compare loans with different rates and costs, and by law it must be disclosed in all advertising.
  • Appraisal
    A written estimate of the value of real or personal property prepared by a qualified appraiser. Mortgage lenders almost always require a property appraisal before approving a home loan.
  • Appreciation
    Added value to real estate or other assets that is the result of increasing prices.
  • Asking Price
    The price requested by a seller when a home or property is listed for sale. This amount is often open to negotiation.
  • Assumable Mortgage
    A mortgage that may be “taken over” by a qualified third party. Most assumable mortgages are government-backed products like VA, FHA and USDA home loans.
  • Assumption Approval Clause
    A clause informing borrowers that they cannot assume a home loan without agency approval.
  • Assumption Indemnity Clause
    A clause informing buyers that they must agree to assume all of the obligations of the original borrower under the terms of the instruments creating and securing the loan.
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