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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
- 7/23 and 5/25 Mortgages
- Mortgages with a one time rate adjustment after seven years and five years respectively.
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- 3/1, 5/1, 7/1 and 10/1 ARMs
- Adjustable-rate mortgages in which rate is fixed for three-year, five-year, seven-year and 10-year periods, respectively, but may adjust annually after that.
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- Acceleration
- The right of the mortgagee (lender) to demand the immediate repayment of the mortgage loan balance upon the default of the mortgagor (borrower), or by using the right vested in the Due-on-Sale Clause.
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- Adjustable rate mortgage (ARM)
- Is a mortgage in which the interest rate is adjusted periodically based on a pre-selected index. Also sometimes known as the renegotiable rate mortgage, the variable rate mortgage or the Canadian rollover mortgage.
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- Adjusted Basis
- The cost of a property plus the value of any capital expenditures for improvements to the property minus any depreciation taken.
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- Adjustment Date
- The date that the interest rate changes on an adjustable-rate mortgage (ARM).
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- Adjustment interval
- On an adjustable rate mortgage, the time between changes in the interest rate and/or monthly payment, typically one, three or five years depending on the index.
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- Adjustment Period
- The period elapsing between adjustment dates for an adjustable-rate mortgage (ARM).
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- Affordability Analysis
- An analysis of a buyers ability to afford the purchase of a home. Reviews income, liabilities, and available funds, and considers the type of mortgage you plan to use, the area where you want to purchase a home, and the closing costs that are likely.
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- Amortization
- Means loan payment by equal periodic payment calculated to pay off the debt at the end of a fixed period, including accrued interest on the outstanding balance.
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- Amortization Term
- The length of time required to amortize the mortgage loan expressed as a number of months. For example, 360 months is the amortization term for a 30-year fixed-rate mortgage.
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- Annual percentage rate (A.P.R.)
- This rate refelects the cost of your mortgage loan when certain "addoitional" loan charges are added to the actual interest rate or Note rate of your mortgage loan. These "additional loan charges are, in general, any fees paid to procure financing. These coast may include, if applicable, discount fees, origination fees, commitment fees, prepaid mortgage insurence, prepaid interest, buy down costs, tax services contract charges, and funding fees. The annual percentage rate is always higher than the note rate. The borrower always pays the note rate.
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- Appraisal
- An estimate of the value of property, made by a qualified professional called an "appraiser".
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- Appraised Value
- An opinion of a property's fair market value, based on an appraiser's knowledge, experience, and analysis of the property.
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- Assessment
- A local tax levied against a property for a specific purpose, such as a sewer or street lights.
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- Assignment
- The transfer of a mortgage from one person to another.
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- Assumability
- An assumable mortgage can be transferred from the seller to the new buyer. Generally requires a credit review of the new borrower and lenders may charge a fee for the assumption. If a mortgage contains a due-on-sale clause, it may not be assumed by a new buyer.
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- Assumption
- The agreement between buyer and seller where the buyer takes over the payments on an existing mortgage from the seller. Assuming a loan can usually save the buyer money since this is an existing mortgage debt, unlike a new mortgage where closing cost and new, probably higher, market-rate interest charges will apply.
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- Assumption Fee
- The fee paid to a lender (usually by the purchaser of real property) when an assumption takes place.
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- Balloon Mortgage
- A loan which is amortized for a longer period than the term of the loan. Usually this refers to a thirty-year amortization and a five year term. At the end of the term of the loan, the remaining outstanding principal on the loan is due. This final payment is known as a balloon payment.
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- Balloon Payment
- The final lump sum paid at the maturity date of a balloon mortgage.
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