The mortgage industry has a language all its own, so to help guide you through the lending process, we've put together this mortgage glossary which defines some of the more commonly used terms. If you have any questions, don’t hesitate to contact us.
Condition in a mortgage that gives the lender the right to require immediate repayment of the loan balance if regular mortgage payments are not made or for breach of other conditions of the mortgage.
Interest earned but not yet paid.
Adjustable Rate Mortgage (ARM)
A mortgage with an interest rate that adjusts based on a financial index, causing interest rates and payments to rise and fall with the market.
A monthly repayment schedule in which a loan is repaid in fixed payments of principal and interest.
Annual Percentage Rate (APR)
The annual cost of a loan, expressed as a yearly rate. APR takes into account interest, discount points, lender fees and mortgage insurance, so it will be slightly higher than the interest rate on the loan.
An initial statement of personal and financial information required to approve your loan.
A fee charged by a lender to cover initial costs of processing a loan application.
A written estimate of a property's current market value, based on recent sales information from similar properties and the current condition of the property.
A fee charged by a licensed, certified appraiser to render an opinion of market value as of a specific date.
A licensed professional who is qualified to estimate property values.
An increase in financial value of a home.
The amount for which a house is offered for sale.
Anything of monetary value that a person owns.
A mortgage contract that can be transferred from one person to another.