adjustable-rate mortgage (ARM)
A mortgage whose interest rate changes periodically based on the changes in a specified index.
Empty controladjustment date
The date on which the interest rate changes for an adjustable-rate mortgage (ARM).
Empty controladjustment period
The period that elapses between the adjustment dates for an adjustable-rate mortgage (ARM).
The repayment of a mortgage loan by installments with regular payments to cover the principal and interest.
Empty controlamortization term
The amount of time required to amortize the mortgage loan. The amortization term is expressed as a number of months. For example, for a 30-year fixed-rate mortgage, the amortization term is 360 months.
Empty controlannual percentage rate (APR)
The cost of a mortgage stated as a yearly rate; includes such items as interest, mortgage insurance, and loan origination fee (points).
An increase in the value of a property due to changes in market conditions or other causes. The opposite of depreciation.
Anything of monetary value that is owned by a person. Assets include real property, personal property, and enforceable claims against others (including bank accounts, stocks, mutual funds, and so on).
The transfer of a mortgage from one person to another.
Empty controlassumable mortgage
A mortgage that can be taken over (“assumed”) by the buyer when a home is sold.
The transfer of the seller’s existing mortgage to the buyer.
Empty controlassumption clause
A provision in an assumable mortgage that allows a buyer to assume responsibility for the mortgage from the seller. The loan does not need to be paid in full by the original borrower upon sale or transfer of the property.
Empty control assumption fee
The fee paid to a lender (usually by the purchaser of real property) resulting from the assumption of an existing mortgage.