Acceleration Clause

A clause in your mortgage allowing the lender to demand payment for the outstanding loan balance. The primary reasons loan acceleration are borrower defaulting on loan payment or transferring title without lender approval.

Adjustable-Rate Mortgage (ARM)

A mortgage in which the interest changes periodically, based on variations in a mathematical index.

Adjustment Date The date the interest rate changes on an adjustable-rate mortgage (ARM).

Amortization

The loan payment consists of a portion which will be applied to pay the accruing interest on a loan, with the remainder being applied to the principal. Over time, the interest portion decreases as the loan balance decreases, and the amount applied to principal increases so that the loan is paid off (amortized) in the specified time.

Amortization Schedule

This is a mathematical table demonstrating the amount of mortgage payment that is credited toward payment of principal and the amount that applies to interest for the loan It will also calculate the balance due following each payment until the balance is paid off.

Annual Percentage Rate ( aka APR )

This is a value calculated using a government approved formula to show the true annual cost of your loan in a percentage number. An approximation for this value can be calculated by first deducting any closing costs from the specified loan amount. Next calculate what the interest rate would be on the actual loan payment. Annual percentage rate will be higher than your loan rate.

Application

This is the form a borrower uses to make a mortgage loan application. It request information about the borrower's income level, all assets, including savings, plus borrower's debts, bankruptcy, and other financial information.

Appraisal

A written basis for the price of a property; using several analysis factors including the purchase price for similar properties within a specified geographic area.

Appraised Value

This is an opinion of fair market value for a particular property. It is based on the property appraiser's experience, knowledge and full analysis of the property being appraised. and analysis of the property. An appraisal is based primarily on comparable property sales, an appraisal typically is used as the sales and purchase price.

Appraiser

A person who, through formal education and training becomes experienced to estimate the valuation of of real property and / or personal property(ies). Most appraisers are independent contractors and not employed by lender or real estate sales company.

Appreciation

The increase in the valuation of any property, real or personal, as a result of changes in the marketplace inflation or deflation, desirability, and other economic factors.

Assessed Value

This is the property valuation based on the processes used by public / government tax assessor for property tax value.

Assessment

The valuation of property, either real estate or personal property, for taxation purposes.

Assessor

A public official / government employee who calculates the taxation value for property.

Asset

Items of value owned by a person. Liquid assets are those that can be rapidly sold and converted to cash. This includes stocks and bonds, mutual fund accounts, and bank accounts. Assets not considered liquid are real estate, personal notes of debt, and personal property.

Assignment

The transfer of ownership of a mortgage from one financial company or individual to company or person(s).

Assumable Mortgage

A mortgage that is transferred to the buyer when a property is sold. The borrower must be considered a qualified buyer for this to occur.

Assumption

A phrase used to describe the process of a buyer assuming a seller's mortgage.