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- Abstract of Title
- an historical summary provided by a title insurance company, of the successive conveyances affecting the title to a property.
- Acceleration Clause
- a provision in a mortgage enabling the lender to declare the entire outstanding balance of a loan immediately due and payable in the event the borrower violates any condition of the mortgage or note (such as missing payments).
- Adjustable-Rate Mortgage (ARM)
- a mortgage with an interest rate that changes periodically, according to an index that is selected when the mortgage is issued, plus a margin that remains constant. Although the initial interest rate may be lower than that of a fixed-rate mortgage, the monthly payments can go up or down when the rate is adjusted.
- Alienation Clause
- a provision stating that a mortgage loan must be paid in full if the ownership is transferred.
- Amortization
- the gradual repayment of a mortgage loan by regular installments including both interest and principal. The timetable covering this process is called an amortization schedule.
- Annual Percentage Rate (APR)
- a stated rate that reflects the entire cost of your mortgage, including interest, points, origination fees, etc.
- Appraisal
- a written estimate of the value of a property, made by a licensed real estate appraiser.
- Appreciation
- an increase in the value of a property, due to changes in the market and/or improvements to the property.
- Assessed Valuation
- a value placed on property for the purpose of levying property taxes. This is not necessarily the same as the appraised or market value of the property.
- Assumable Mortgage
- a mortgage that can be taken over by the buyer of a property. FHA and VA loans are fully assumable loans.
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Mortgage Glossary © Copyright 2004, 2008
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