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 warning that if you sell your home to someone who doesn’t/can’t assume your VA mortgage...
  • Accrued Interest
    Accrued Interest is the interest that has accumulated from one payment-due date to the next as well as the total amount of interest paid on a loan over time.
  • Adjustable Rate Mortgage (ARM)
    An Adjustable Rate Mortgage, or ARM, is a mortgage where the interest rate is adjusted periodically based on an index. It is also known as the renegotiable rate mortgage, the variable rate mortgage or the Canadian rollover mortgage.
  • Adjustment Interval
    The adjustment interval is the time between changes in the interest rate and/or monthly payment for an adjustable rate mortgage, usually one, three or five years.
  • Amortization
    Amortization is the gradual reduction of a debt by periodic payments of interest and principal that are large enough to pay off a loan at maturity. The loan is repaid through regular, monthly payments of principal and interest paid for a predetermined amount of time.
  • Annual Fee
    A credit card issuer may charge you a fee each year for your account.
  • Annual Percentage Rate
    The annual cost of a loan to a borrower. Like an interest rate, the APR is expressed as a percentage of the loan amount. Unlike an interest rate, however, it includes other charges or fees to reflect the total cost of the loan. The Federal Truth in Lending Act requires that every consumer loan agreement disclose the APR in large, bold print. Since all lenders must follow the same rules to ensure the accuracy of the APR, borrowers can use the APR as a good basis for comparing the cost of loans.
  • Appraisal
    An appraisal is a written analysis of the estimated value of a property, as prepared by a qualified appraiser. A fee is typically charged to perform a real estate appraisal because it can be time-consuming. An appraisal of an auto is usually not necessary because auto dealers, sellers and buyers all have quick access to the market value of autos.
  • Appreciation
    The increase in value of a home or other asset as a result of an increase in the market.
  • 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
    An assumable mortgage is a mortgage that allows you to take over a mortgage on a home you are buying or allows a buyer to take over your mortgage if you are selling your house. The advantage of this is that you assume a mortgage that has a lower interest rate than current rates, and you avoid high closing costs.
  • Assumption Approval Clause
    This loan is not assumable without the approval of the department...
  • Assumption Indemnity Clause
    Buyers who take over a VA mortgage must agree to assume all of the obligations of the veteran under the terms of the instruments creating and securing the loan...
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