A clause in your mortgage which allows the lender to demand payment of the outstanding
loan balance for various reasons. The most common reasons for accelerating a loan are
if the borrower defaults on the loan or transfers title to another individual without
informing the lender.
A mortgage in which the interest changes periodically, according
to corresponding fluctuations in an index. All ARMs are tied to indexes.
The date the interest rate changes on an adjustable-rate mortgage
The loan payment consists of a portion which will be applied to pay the accruing interest
on a loan, with the remainder being applied to the principal. Over time, the interest
portion decreases as the loan balance decreases, and the amount applied to principal
increases so that the loan is paid off (amortized) in the specified time.
A table which shows how much of each payment will be applied toward principal and how
much toward interest over the life of the loan. It also shows the gradual decrease of
the loan balance until it reaches zero.
This is not the note rate on your loan. It is a value created according to a government
formula intended to reflect the true annual cost of borrowing, expressed as a percentage.
It works sort of like this, but not exactly, so only use this as a guideline: deduct
the closing costs from your loan amount, then using your actual loan payment, calculate
what the interest rate would be on this amount instead of your actual loan amount. You
will come up with a number close to the APR. Because you are using the same payment
on a smaller amount, the APR is always higher than the actual not rate on your loan.
The form used to apply for a mortgage loan, containing information about a borrower's income,
savings, assets, debts, and more.
A written justification of the price paid for a property, primarily based on an analysis of comparable
sales of similar homes nearby.
An opinion of a property's fair market value, based on an appraiser's knowledge,
experience, and analysis of the property. Since an appraisal is based primarily on comparable
sales, and the most recent sale is the one on the property in question, the appraisal
usually comes out at the purchase price.
An individual qualified by education, training, and experience to estimate the value of
real property and personal property. Although some appraisers work directly for mortgage
lenders, most are independent.
The increase in the value of a property due to changes in market conditions, inflation,
or other causes.
The valuation placed on property by a public tax assessor for purposes of taxation.
The placing of a value on property for the purpose of taxation.
A public official who establishes the value of a property for taxation purposes.
Items of value owned by an individual. Assets that can be quickly converted into cash are considered
"liquid assets." These include bank accounts, stocks, bonds, mutual funds,
and so on. Other assets include real estate, personal property, and debts owed to an
individual by others.
When ownership of your mortgage is transferred from one company or individual to another,
it is called an assignment.
A mortgage that can be assumed by the buyer when a home is sold. Usually, the borrower
must "qualify" in order to assume the loan.
The term applied when a buyer assumes the seller's mortgage.