Mortgage Terms A - Z
Mortgage Terms A - Z
A
Acceleration Clause
This a clause that gives the lender an option to call the entire loan balance due and payable. This clause could be exercised for many reasons but usually happens on the transfer of property or because the buyer has failed to make regular payments.
Adjustable-Rate Mortgage (ARM)s
A mortgage or home equity loan in which the interest rate and monthly payment may change according to a certain market index.
Additional Principal Payment
The borrower can add an extra amount and apply it to the mortgage balance. Additional payments could be added to the current monthly mortgage payment or could be made via a lump sum at any point in time.
Amortization
The gradual reduction of the principal owed on a debt. In the beginning of a mortgage, a majority of each payment is applied to the interest. At the end of the loan, most of each payment is applied toward the principal.
Amortization Term
The amount of time required to pay off the loan. This is expressed in month. For example a 30-year loan is shown as 360 months.
Annual Adjustment Cap
A limit on how much the variable interest rate can go up or down in a year.
Annual Percentage Rate (APR)
The annual cost of a loan to a borrower.
Read The Full Article Here: Smith Lake Property
Author 1341 > has blogged 243 times
