| MORTGAGE GLOSSARY a | b-c | d-f | g-l | m-q | r-s | t-z | |||||||
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7/23 and 5/25 Mortgages Mortgages with a one time rate adjustment after seven years and five years respectively. 3/1, 5/1, 7/1 and 10/1 ARMs Adjustable-rate mortgages in which rate is fixed for three-year, five-year, seven-year and 10-year periods, respectively, but may adjust annually after that. Acceleration The right of the mortgagee (lender) to demand the immediate repayment of the mortgage loan balance upon the default of the mortgagor (borrower), or by using the right vested in the Due-on-Sale Clause. Adjustable Rate Mortgage (ARM) Is a mortgage in which the interest rate is adjusted periodically based on a pre-selected index. Also sometimes known as the renegotiable rate mortgage, the variable rate mortgage or the Canadian rollover mortgage. Adjusted Basis The cost of a property plus the value of any capital expenditures for improvements to the property minus any depreciation taken. Adjustment Date The date that the interest rate changes on an adjustable-rate mortgage (ARM). Adjustment Interval On an adjustable rate mortgage, the time between changes in the interest rate and/or monthly payment, typically one, three or five years depending on the index. Adjustment Period The period elapsing between adjustment dates for an adjustable-rate mortgage (ARM). Amortization Means loan payment by equal periodic payment calculated to pay off the debt at the end of a fixed period, including accrued interest on the outstanding balance. Amortization Term The length of time required to amortize the mortgage loan expressed as a number of months. For example, 360 months is the amortization term for a 30-year fixed-rate mortgage. Annual Percentage Rate (A.P.R.) APR is a measurement of the full cost of a loan including interest and loan fees expressed as a yearly percentage rate. Because all lenders apply the same rules in calculating the annual percentage rate, it provides consumers with a good basis for comparing the cost of loans. Appraisal An estimate of the value of property, made by a qualified professional called an "appraiser". Appraised Value An opinion of a property's fair market value, based on an appraiser's knowledge, experience, and analysis of the property. Assessment A local tax levied against a property for a specific purpose, such as a sewer or street lights. Assignment The transfer of a mortgage from one person to another. |
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