A B C D E F G H I L M N O P Q R S T U V

Additional Principal Payment - A way to reduce the remaining balance on the loan by paying more than the scheduled principal amount due.

Adjustable-Rate Mortgage (ARM) - A mortgage with an interest rate that changes during the life of the loan according to movements in an index rate. Sometimes called AMLs (adjustable mortgage loans) or VRMs (variable-rate mortgages).

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 Period - The period elapsing between adjustment dates for an adjustable-rate mortgage (ARM).

Amortization - The gradual repayment of a mortgage loan, both principal and interest, by installments.

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 (APR) - The cost of credit, expressed as a yearly rate including interest, mortgage insurance, and loan origination fees. This allows the buyer to compare loans, however APR should not be confused with the actual note rate.

Appraisal - A written analysis prepared by a qualified appraiser and estimating the value of a property.

Appraised Value - An opinion of a property's fair market value, based on an appraiser's knowledge, experience, and analysis of the property.

Asset - Anything owned of monetary value including real property, personal property, and enforceable claims against others (including bank accounts, stocks, mutual funds, etc.).

Assignment - The transfer of a mortgage from one person to another.

Assumability - An assumable mortgage can be transferred from the seller to the new buyer. Generally requires a credit review of the new borrower and lenders may charge a fee for the assumption. If a mortgage contains a due-on-sale clause, it may not be assumed by a new buyer.