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VWXYZacceleration clause
A provision in a mortgage that gives the
lender the right to demand payment of the
entire principal balance if a monthly
payment is missed.
acceptance
An offeree’s consent to enter into a
contract and be bound by the terms of the
offer.
additional principal payment
A payment by a borrower of more than the
scheduled principal amount due in order to
reduce the remaining balance on the loan.
adjustable rate mortgage (ARM)
A mortgage that permits the lender to adjust
its interest rate periodically on the basis
of changes in a specified index.
adjusted basis
The original cost of a property plus the
value of any capital expenditures for
improvements to the property minus any
depreciation taken.
adjustment date
The date on which the interest rate changes
for an adjustable-rate mortgage (ARM).
adjustment period
The period that elapses between the
adjustment dates for an adjustable-rate
mortgage (ARM).
administrator
A person appointed by a probate court to
administer the estate of a person who died
intestate.
affordability analysis
A detailed analysis of your ability to
afford the purchase of a home. An
affordability analysis takes into
consideration your income, liabilities, and
available funds, along with the type of
mortgage you plan to use, the area where you
want to purchase a home, and the closing
costs that you might expect to pay.
amenity
A feature of real property that enhances its
attractiveness and increases the occupant’s
or user’s satisfaction although the feature
is not essential to the property’s use.
Natural amenities include a pleasant or
desirable location near water, scenic views
of the surrounding area, etc. Human-made
amenities include swimming pools, tennis
courts, community buildings, and other
recreational facilities.
amortization
The gradual repayment of a mortgage loan by
installments.
amortization schedule
A timetable for payment of a mortgage loan.
An amortization schedule shows the amount of
each payment applied to interest and
principal and shows the remaining balance
after each payment is made.
amortization term
The amount of time required to amortize the
mortgage loan. The amortization term is
expressed as a number of months. For
example, for a 30-year fixed-rate mortgage,
the amortization term is 360 months.
amortize
To repay a mortgage with regular payments
that cover both principal and interest.
annual mortgagor statement
A report sent to the mortgagor each year.
The report shows how much was paid in taxes
and interest during the year, as well as the
remaining mortgage loan balance at the end
of the year.
annual percentage rate (APR)
The cost of a mortgage stated as a yearly
rate; includes such items as interest,
mortgage insurance, and loan origination fee
(points).
annuity
An amount paid yearly or at other regular
intervals, often on a guaranteed dollar
basis.
application
A form used to apply for a mortgage loan and
to record pertinent information concerning a
prospective mortgagor and the proposed
security.
appraisal
A written analysis of the estimated value of
a property prepared by a qualified
appraiser. Contrast with home inspection.
appraised value
An opinion of a property's fair market
value, based on an appraiser's knowledge,
experience, and analysis of the property.
appraiser
A person qualified by education, training,
and experience to estimate the value of real
property and personal property.
appreciation
An increase in the value of a property due
to changes in market conditions or other
causes. The opposite of depreciation.
assessed value
The valuation placed on property by a public
tax assessor for purposes of taxation.
assessment
The process of placing a value on property
for the strict purpose of taxation. May also
refer to a levy against property for a
special purpose, such as a sewer assessment.
assessment rolls
The public record of taxable property.
assessor
A public official who establishes the value
of a property for taxation purposes.
asset
Anything of monetary value that is owned by
a person. Assets include real property,
personal property, and enforceable claims
against others (including bank accounts,
stocks, mutual funds, and so on).
assignment
The transfer of a mortgage from one person
to another.
assumable mortgage
A mortgage that can be taken over
("assumed") by the buyer when a home is
sold.
assumption
The transfer of the seller’s existing
mortgage to the buyer. See assumable
mortgage.
assumption clause
A provision in an assumable mortgage that
allows a buyer to assume responsibility for
the mortgage from the seller. The loan does
not need to be paid in full by the original
borrower upon sale or transfer of the
property.
assumption fee
The fee paid to a lender (usually by the
purchaser of real property) resulting from
the assumption of an existing mortgage.
attorney-in-fact
One who holds a power of attorney from
another to execute documents on behalf of
the grantor of the power.