Adjustable Rate Mortgage

A loan whose Interest Rate is adjusted to financial market movements.
 

Adjustment Interval

The period of time between changes in the interest rate for an adjustable-rate mortgage.  Typical adjustment intervals are one, three, and five years.
 

Amenity

A feature of real property that enhances its attractiveness and increases the occupant's or user's satisfaction, although the feature is not essential to the property's use.  Natural amenities include a pleasant or desirable location near water, scenic views, etc.  Man-made amenities include swimming pools, tennis courts, community buildings, and other recreational facilities.
 

Amortization

A payment plan by which a loan is reduced through monthly payments of principal and interest.
 

Annual Percentage Rate

Annual cost of credit over the life of the loan, including interest, service charges, points, loan fees, mortgage insurance, and other items.  Disclosure of APR is required by the Truth-in-Lending Law.
 

Application

A form to be completed by a home loan applicant with the lender's assistance to provide pertinent information about a prospective borrower's employment, income, assets, debts and other financial information, about the purpose of the home loan, and about the property securing the home loan.  Lenders also sometimes call it a 1003-the form number of Fannie Mae's standard loan application.
 

Appraisal

An evaluation to determine the current market price of a property.
 

Appreciation

The increase in the value of the property due to changes in market conditions or other causes.  Inflation, increased demand, home improvement, and sweat equity are all causes of appreciation.  The opposite of depreciation.
 

Assessment

A tax levied on a property, or a value placed on the worth of a property by a taxing authority.  May also refer to the amount due to a local government or to common owners of a property (e.g., a homeowner's association) for a special payment to cover expenses of improvements or maintenance, such as new sewers or roads.

Asset

Anything of monetary value that is owned by a person.  Assets include real property, personal property, and enforceable claims against others (including bank accounts, stocks mutual funds, and so on).
 

Assignment

The method of transferring a right or contract, such as the terms of a loan, from one person to another.
 

Assumption

Allows a buyer to assume responsibility for an existing loan instead of getting a new loan.  The lender usually charges the buyer a fee to start collecting the payment from the buyer instead of the original borrower (seller).

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02/23/12 07:46 AM