Vocabulary A-Z Flashcards
Acceleration Clause
A provision in a mortgage that gives the lender the right to demand payment of the entire principal balance if a monthly payment is missed.
Acceptance
An offeree’s consent to enter into a contract and be bound by the terms of the offer.
Additional Principal Payment
A payment by a borrower of more than the scheduled principal amount due in order to reduce the remaining balance on the loan.
Adjustable Rate Mortgage (ARM)
A mortgage that permits the lender to adjust its interest rate periodically on the basis of changes in a specified index.
Adjusted Basis
The original cost of a property plus the value of any capital expenditures for improvements to the property minus any depreciation taken.
Adjustment Date
The date on which the interest rate changes for an adjustable-rate mortgage.
Adjustment Period
The period that elapses between the adjustment dates for an adjustable-rate mortgage.
Administrator
A person appointed by a probate court to administer the estate of a person who died intestate.
Affidavits
A formal sworn statement of fact.
Affordability Analysis
A detailed analysis of your ability to afford the purchase of a home. An affordability analysis takes into consideration your income, liabilities, and available funds, along with the type of mortgage you plan to use, the area where you want to purchase a home, and the closing costs that you might expect to pay.
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.
Amortization
The gradual repayment of a mortgage loan by installments.
Amortization Term
The amount of time required to amortize the mortgage loan. The amortization term is expressed as a number of months.
Amortize
To repay a mortgage with regular payments that cover both principal and interest.
Amortization Schedule
A timetable for payment of a mortgage loan. An amortization schedule shows the amount of each payment applied to interest and principal and shows the remaining balance after each payment is made.
Assumption Clause
A provision in an assumable mortgage that allows a buyer to assume responsibility for the mortgage from the seller. The loan does not need to be paid in full by the original borrower upon sale or transfer of the property.
Attorney-In-Fact
One who holds a power of attorney from another to execute documents on behalf of the grantor of the power.
