Glossary of terms used on this site
There are 105 entries in this glossary.All
| Term | Definition |
|---|---|
| Additional Principal Payments |
These are payments that are higher than the required amount. The extra money paid reduces the principal balance on the loan. |
| Adjustable Rate Mortgage (ARM) |
A loan with an interest rate that changes as the rate of the index changes. |
| Adjustment Period |
The time between possible changes to the rate of interest for an adjustable rate mortgage. |
| Amortization |
The gradual reduction of a loan debt through monthly payments consisting of principal and interest. |
| Annual Percentage Rate (APR) |
The total cost of your loan expressed as a percentage rate of interest. APR includes the loan’s interest rate and certain closing costs and fees associated with the loan that is amortized over the life of the loan. |
| Appraisal |
An expert’s opinion of the value of real property derived with careful consideration of available and relevant data. States require certification or licensing of real estate appraisers for most appraisals. |
| Appraised Value |
The value of a home as determined by a certified appraiser |
| Appreciation |
Increase in the market value of a property caused by market forces, such as inflation, increased demand, or scarcity of a type of real estate. The amount of appreciations is measured by its value or selling price, less the sum of its original cost and the cost of any capital improvements. |
| APR |
See ANNUAL PERCENTAGE RATE. |
| ARM |
See ADJUSTABLE RATE MORTGAGE. |