acceleration 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.
