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18 Cards in this Set
- Front
- Back
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Acceleration clause |
A clause in your mortgage which allows the lender to demand payment of the outstanding loan balance for various reasons. The most common reasons for accelerating alone or if the borrower default on the loan or transfer the title to another individual without informing the lender. |
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Adjustable rate mortgage arm |
A mortgage in which the interest changes periodically comma according to corresponding fluctuations and an index. All arms are tied to indexes |
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Adjustment date |
The date the interest rate changes on an adjustable rate mortgage |
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Amortization |
The loan payment consist of a portion which will be applied to pay the occurring interest on a loan with the remainder being applied to the principal over time the interest portion decreases as the loan balance decreases and the amount applied to principal increases so that the loan is paid off and a specified time |
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Amortization schedule |
A table which shows how much of each payment will be applied toward principal and how much toward interest over the life of the loan. It also shows the gradual decrease of the loan balance until it reaches 0 |
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Annual percentage rate APR |
This is not the note rate on your loan. It is a value created according to a government formula intended to reflect the true annual cost of borrowing, expressed as a percentage. It also works sort of like this, but not exactly color 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 note rate of your loan. |
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Application |
The form used to apply for a mortgage loan, containing information about a borrower's income, savings, assets Debts, and more. |
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Appraisal |
A written justification of the price paid for a property, primarily based on an analysis of comparable sales of similar homes nearby. |
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Appraised value |
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. |
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Appraiser |
An individual qualified by education, training, and experience to estimate the value of real property and personal property. All those some appraisers work directly for mortgage lenders, most are independent. |
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Appreciation |
The increase in the value of the property due to changes in market conditions, inflation, or other causes. |
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Assessed value |
The valuation placed on property by public tax assessor for purposes of Taxation |
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Assessment |
The placing of a value on property for the purpose of Taxation |
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Assessor |
A public official who establishes the value of a property for taxation purposes. |
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Asset |
Items of value owned by an individual. Assets that can be quickly converted into Cash are considered liquid assets. These include bank accounts stocks Vons mutual funds, and so on. |
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Assignment |
When ownership of your mortgage is transferred from one company or individual to another, it is called an assignment. |
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Assumable mortgage |
A mortgage that can be assumed by the buyer when a home is sold. Usually comma the borrow must qualify in order to assume the loan. |
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Assumption |
The term applied when a buyer assumes the seller's mortgage. |
