Re Glossary - "a"

Front 1

acceleration clause

Back 1

a clause in our mortgage which allows the lender to demand payment of the outstanding loan balance for various reasons. The most common reasons for accelerating a loan are if the borrower defaults on the loan or transfers title to another individual without informing the lender

Front 2

adjustable-rate mortgage (A.R.M.)

Back 2

a mortgage in which the interest changes periodically, according to corresponding fluctuations in an index. All ARMs are tied to indexes.

Front 3

adjustment date

Back 3

the date the interest rate changes on a adjustable-rate mortgage (ARM)

Front 4

amortization

Back 4

loan payment consist of a portion which will be applied to pay the accruing interest on a loan, with the remainder being applied to the principal. Over time, the interest portion decreases as the loan balance decreases, & the amount applied to principal increases so that the loan is paid off (amortized) in the specific time.

Front 5

Keoni purchases a home, and the seller helps to finance the sale. The price is $100,000, & Keoni is to make a $10,000 cash down payment. The amount of the mortgage payments would pay it off in thirty years, but the owner requires that it come due in seven years. What type mortgage is this?

a. adjustable rate;

b. fully amortizing;

c. partially amortizing;

d. term

Back 5

Ans. partially amortizing

Front 6

amortization schedule

Back 6

a table which shows how much of each payment will be applied toward principal & how much toward interest over the life of the loan. It also shows the gradual decrease of the loan balance until it reaches zero.

Front 7

annual percentage rate (A.P.R.)

Back 7

this is not the note rate on your loan. It is a value created according to a government formular intended to reflect the true annual cost of borrowing expressed as a percentage. It works sort of like this, but not exactly, so only use this as a guideline:

Deduct the closing costs from your loan amount, then using your actual loan payment, calculate what the interest rate would be on this amount instead of your actual loan amount. You will come up with a number close to the APR. Because you are using the same payment on a smaller amount, the APR is always higher than the actual not rate on your loan.

Front 8

define - application.

Back 8

The form used to apply for a mortgage loan, containing information about a borrower's income, savings, assets, debts, and more.

Front 9

define - appraisal.

Back 9

A written justification of the price paid for a property, primarily based on an analysis of comparable sales of similar homes nearby.

Front 10

define - appraised value.

Back 10

An opinion of a property's fair market value, based on an appraiser's knowledge, experience, and analysis of the property. Since an appraisal is based primarily on comparable sales, and the most recent sale is the one on the property in question, the appraisal usually comes out at the purchase price.

Front 11

define - appraiser.

Back 11

An individual qualified by education, training, and experience to estimate the value of real property and personal property. Although some appraisers work directly for mortgage lenders, most are independent.

Front 12

define - appreciation.

Back 12

The increase in the value of a property due to changes in market conditions, inflation, or other causes.

Front 13

define - assessed value.

Back 13

The valuation placed on property by a public tax assessor for purposes of taxation.

Front 14

define - assessment.

Back 14

The placing of a value on property for the purpose of taxation.

Front 15

define - assessor

Back 15

A public official who establishes the value of a property for taxation purposes.

Front 16

define - asset

Back 16

Items of value owned by an individual. Assets that can be quickly converted into cash are considered "liquid assets." These include bank accounts, stocks, bonds, mutual funds, and so on. Other assets include real estate, personal property, and debts owed to an individual by others.

Front 17

define - assignment

Back 17

When ownership of your mortgage is transferred from one company or individual to another, it is called an assignment.

Front 18

define - assumable mortgage

Back 18

A mortgage that can be assumed by the buyer when a home is sold. Usually, the borrower must "qualify" in order to assume the loan.

Front 19

define - assumption

Back 19

The term applied when a buyer assumes the seller's mortgage.