A

abstract of title :

A historical summary provided by a title insurance company of public records affecting the title to a property.

acceleration :

Allows a lender to declare the entire outstanding balance of a loan immediately due and payable should a borrower violate specific loan provisions or default on the loan.

access or draw period :

For a home equity line of credit, this is the length of time during which the mortgagor can borrow money - usually ten years. During this time period, funds can be borrowed up to the available credit limit, usually by drawing on the line using special checks. Minimum borrowing requirements (e.g., $250 per draw) may apply.

adjustment date :

The date the interest rate changes on an adjustable-rate mortgage

adjustable rate mortgage ( ARM) :

A variable rate mortgage with an interest rate that adjusts periodically according to the financial index it is based upon plus a margin. To limit the borrower's risk, the ARM may have a payment or rate cap. See also: cap.

amortization :

The reduction of a debt by regular, usually monthly, installments of principal and interest. An amortization schedule is a table showing the payment, the amounts applied to interest and principal and the unpaid balance.

amortization schedule :

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.

annual fees :

A yearly membership or maintenance fee for having the home equity line of credit available. It is charged whether or not the line is used.

annual percentage rate (APR) :

The cost of credit expressed as a yearly rate, taking into account interest, points, and other finance charges. Disclosure of the APR is required by the federal Truth-in-Lending Act and allows borrowers to compare the costs of different mortgage loans.

appraisal :

An estimate of a property's value as of a given date, determined by a qualified professional appraiser. The value may be based on replacement cost, the sales of comparable properties or the property's ability to produce income. Appraisal alternatives may be available for some products and property types. These include value automated valuation models, drive-by appraisals and tax assessed.

appreciation :

A property's increase in value due to inflation or economic factors.

arrears :

Mortgage interest is paid at the end of the period during which it accrues, i.e. the interest portion of the payment due on the first of the month is for funds outstanding during the previous month. Delinquent payments are also known as being "in arrears".

assessed value :

The valuation placed on property by a public tax assessor for purposes of           taxation.

assessment :

Charges levied against a property for tax purposes or to pay for municipality or association improvements such as curbs, sewers, or grounds maintenance.

assessor :

A public official who establishes the value of a property for taxation purposes.

asset :

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,

assignment :

A means of transferring a contract right or other asset to another person or entity.

assumable mortgage :

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.

assumption :

An agreement between a buyer and a seller which may require lender approval, where the buyer takes over the payments for a mortgage and accepts the liability. Assuming a loan can be advantageous for a buyer because there are no closing costs and the loan's interest rate may be lower than current market rates. Depending on the terms of the mortgage or deed of trust, the lender may raise the interest rate or require the buyer to qualify for the mortgage.

automated valuation model :

A computer model used to estimate the current market value of a home using property records and various analytic methodologies such as comparable sales prices, home characteristics and historical home price appreciation.

available cash :

This is typically your cash on hand or assets that can be turned into cash quickly, like 401k plans, stocks, proceeds from the sale of a home or other equity, etc.