|
Amortization
|
| repayment of a mortgage
loan through monthly installments of
principal and interest; the monthly
payment amount is based on a schedule
that will allow you to own your home at
the end of a specific time period (for
example, 15 or 30 years) |
| |
|
Annual Percentage Rate (APR) |
| calculated by using a
standard formula, the APR shows the cost
of a loan; expressed as a yearly
interest rate, it includes the interest,
points, mortgage insurance, and other
fees associated with the loan. |
| |
Application
|
| the first step in the
official loan approval process; this
form is used to record important
information about the potential borrower
necessary to the underwriting process.
|
| |
Appraisal
|
| a document that gives an
estimate of a property's fair market
value; an appraisal is generally
required by a lender before loan
approval to ensure that the mortgage
loan amount is not more than the value
of the property. |
| |
Appraiser
|
| A qualified individual
who uses his or her experience and
knowledge to prepare the appraisal
estimate. |
| |
ARM |
| Adjustable Rate
Mortgage; a mortgage loan subject to
changes in interest rates; when rates
change, ARM monthly payments increase or
decrease at intervals determined by the
lender; the change in monthly payment
amount, however, is usually subject to a
Cap. |
| |
Assessor |
| a government official
who is responsible for determining the
value of a property for the purpose of
taxation. |
| |
Assumable mortgage |
a mortgage that can be
transferred from a seller to a buyer;
once the loan is assumed by the buyer
the seller is no longer responsible for
repaying it; there may be a fee and/or a
credit package involved in the transfer
of an assumable mortgage.
|
