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Acceleration Clause ? A clause in a mortgage defining that the entire outstanding balance can become due and payable should mortgage default occur. If the entire balance is not paid, the property will be foreclosed.
Adjustable Rate Mortgage (ARM) ? Mortgage with interest rates that may be adjusted by the mortgage lender to reflect the most current lending rates set by the Federal Reserve. Most ARM's have an interest cap or a limit of the amount the interest can go up or down at any given time.
Adjustment Date ? The date on which an interest rate adjustment may occur on an adjustable rate mortgage (ARM). The adjustment date is usually the date of the next payment due after notification of rate adjustment. Adjustment dates normally do not occur more than once per quarter, once per year Authentic Colts Jersey , or as stated in your mortgage documentation.
Amortization Schedule ? A chart which defines how much of each payment goes toward paying interest and how much goes toward paying principal. In the case of most loans, the initial payments are mainly interest and very little is paid toward the principal. As payments continue, further in the schedule Khari Willis Big Tall Jersey , the amounts paid toward principal will become greater than the amount paid toward interest. The amount of payment to interest ratio will depend largely upon the type of mortgage.
Annual Percentage Rate (APR) -- The current interest rate of a mortgage loan converted into actual annual percentage rate when compounded. Credit cards often indicate a monthly rate of 17% but when converted into APR, the rate is 21.5% due to interest compounding. At closing on any mortgage, both the basic interest rate and the APR should be clearly defined and documented.
Application for Mortgage -- The initial document filled out by the mortgage applicant when applying for consideration of a mortgage lender providing financing. These applications may be filled out at a local institution or at an Internet website for online lenders.
Appraisal ? The value of a property determined by an appraisal expert who professionally determines value. Also Bobby Okereke Big Tall Jersey , a value established by the Property Tax Assessor for taxation purposes which will not reflect the amount of mortgage or perhaps even the appraised value of the property.
Appraiser ? A person who appraises property professionally. Most, if not all, states require appraisers to hold licenses establishing their credentials and qualifications.
Appreciation ? The increase in value of a property or any other object that becomes more valuable as time passes. Appreciation results from an item or property becoming more desirable Parris Campbell Big Tall Jersey , inflation, or other factors. This is why people can buy homes and, as time passes Ben Banogu Big Tall Jersey , sell them for a great deal more than the mortgage amount held, making mortgage investments profitable.
Assumable Mortgage ? A mortgage which allows the transfer of the mortgage from one mortgagee (debtor) to another without paying off the mortgage and initiating a brand new mortgage. This is also known as 'take over payments?. Proper mortgage processing through the mortgage company allows the legal transfer of the property.
Balloon Mortgage Balloon Payment ? A mortgage with low monthly payments that requires a very large payment at the end of the mortgage or periodically during the mortgage as defined in the mortgage documents. Some mortgages have 5-year balloon payments; others have balloon payments due at other periods. While the monthly payment may be low, the balloon mortgage requirements mean that the home buyer must be prepared when balloon payments come due or they may suffer penalties such as default on the mortgage.
Bi-Weekly Mortgage ? A mortgage requiring payments every two weeks rather than monthly mortgage payments. These mortgages involve 26 payments per year instead of 12 per year Rock Ya-Sin Big Tall Jersey , as with monthly mortgages resulting in a shorter life of the mortgage or lower payments.
Bridge Loan ? A short-term loan obtained to provide funding for a new home before the former home has sold. Upon sale of the former home, the bridge loan is paid off with the funds from the home sale.
Broker ? A person whose profession involves locating the right mortgages for people who wish to obtain home financing. Mortgage Brokers match buyers and mortgages, perform research Malik Hooker Big Tall Jersey , and locate difficult to find mortgages or locate financing for difficult to finance people.