|
1 |
2 |
3 |
4 |
NEXT >>
Adjustable Rate Mortgage
A mortgage which has a rate that adjusts periodically based on
a pre determined Index, Margin, Adjustment Period, Adjustment
cap and Life cap. Also known as a Variable Rate Mortgage.
Amortization
The systematic and continuous
repayment of an obligation through periodic installments until
the debt has been paid in full.
Amortization Schedule
A timetable for payment of a mortgage showing the amount
of each payment applied to interest and principal and the
balance remaining.
Annual Percentage Rate (APR)
The total yearly cost of a mortgage
stated as a percentage of the loan amount ; includes such
items as the base interest rate, primary mortgage insurance
and loan origination fee. Because extra costs are included in
the calculation of this rate, it will always be a bit higher
than the interest rate you agreed to pay on your mortgage.
Appraisal
A formal written estimation of the
current market value of a home. Also refers to the process by
which this estimate is obtained.
Appraised Value : The
estimate of a property's value made by a qualified expert.
Used by lenders to assure the value of the property is at
least as much as the amount of the proposed loan.
Assessed Valuation : The
value that a taxing authority places upon personal property
for the purpose of taxation.
Annual Percentage Rate
An interest rate, which is
calculated, based on the interest rate used to calculate your
payments and the entire non-recurring loan related charges.
This is the true interest rate as defined by the Fair Lending
Law.
Assumption
A clause in a mortgage note that allows a tired party to
assume responsibility for the loan, and therefore purchase a
home without qualifying for a new loan. Most modern notes are
only assumable by a fully qualified buyer only, rendering them
quite useless.
Budget
A written plan which shows your
income and expenses as precisely as possible. A plan for
SAVING and spending it will show you exactly where you stand
financially.
Buy Down
Method of buying down the rate (by paying extra up front fees)
to keep the mortgage payments low for a fixed period of time.
This type of mortgage has become obsolete with the advent of
3/1 and 5/1 adjustable rate mortgages.
1 |
2 |
3 |
4 |
NEXT >>
|
