acceleration clause
A provision in a mortgage that gives the lender the right to demand
payment of the entire principal balance if a monthly payment is missed.
acceptance
An offeree’s consent to enter into a contract and be bound by the terms
of the offer.
additional principal
payment
A payment by a borrower of more than the scheduled principal amount due
in order to reduce the remaining balance on the loan.
adjustable-rate mortgage (ARM)
A mortgage that permits the lender to adjust its interest rate
periodically on the basis of changes in a specified index
adjusted basis
The original cost of a property plus the value of any capital
expenditures for improvements to the property minus any depreciation
taken.
adjustment date
The date on which the interest rate changes for an
adjustable-rate mortgage (ARM).
adjustment period
The period that elapses between the adjustment dates for an
adjustable-rate mortgage (ARM).
administrator
A person appointed by a probate court to administer the estate
of a person who died in testate.
affordability analysis
A detailed analysis of your ability to afford the purchase of a
home. An affordability analysis takes into consideration your income,
liabilities, and available funds, along with the type of mortgage you
plan to use, the area where you want to purchase a home, and the closing
costs that you might expect to pay.
amenity
A feature of real property that enhances its attractiveness and
increases the occupant’s or user’s satisfaction although the feature is
not essential to the property’s use. Natural amenities include a
pleasant or desirable location near water, scenic views of the
surrounding area, etc. Human-made amenities include swimming pools,
tennis courts, community buildings, and other recreational facilities.
Equal Housing Opportunity