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.
