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GLOSSARY 'A' |
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1. |
Abstract of Title:
A written history of ownership of a parcel of land.
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2. |
Acceleration:
The right of the lender to demand the immediate repayment of the loan balance upon the default of the borrower.
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3. |
Acknowledgment:
A formal declaration made before an authorized official, by the person who has signed a document, that such execution is his/her own act and deed.
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4. |
Addendum:
A document added to a contract, agreement, or another document.
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5. |
Adjustable Period:
The length of time between interest rate changes on an ARM.
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6. |
Adjustable Rate Mortgage (ARM):
A mortgage in which the interest rate is changes periodically based on an index. Also called a variable rate mortgage.
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7. |
Adjustment Interval:
For an adjustable rate mortgage, the time (one, three or five years) between changes in the interest rate or monthly payment.
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8. |
Adjustment Period Cap:
The amount that the interest rate is allowed to increase or decrease at the time of adjustment of an ARM.
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9. |
Affidavit:
A sworn statement in writing, made before an authorized official.
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10. |
Agent:
A person with a real estate license who works acts on behalf of another for a fee.
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11. |
American Land Title Association (A.L.T.A.):
This is a national association of title companies, attorneys and abstractors.
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12. |
Amortization:
Regular scheduled repayment of a loan in equal installments of principle and interest.
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13. |
Amortization Schedule:
A table showing the amounts of principal and interest due and the unpaid mortgage balance after each payment.
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14. |
Annual Percentage Rate (APR):
The interest rate, which reflects the total finance charges of a mortgage as a yearly rate.
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15. |
Application:
The form used to record pertinent information concerning the borrower's ability to repay the loan.
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16. |
Application Fee:
Fee charged by the lender to the borrower for making loan application.
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17. |
Appraisal:
A written report by a qualified person that estimates a property's value based on recent sales information of similar properties.
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18. |
Appreciation:
Increase in value of a property.
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19. |
As-is:
Value of a property based on its current condition.
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20. |
Assessments:
Specific and special taxes imposed on real property to pay for public improvements within a specific geographic area.
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21. |
Assumable Loan:
A loan wherein the buyer "assumes" all outstanding payments.
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22. |
Assumption of Mortgage:
A buyer's agreement to assume the liability under an existing note that is secured by a mortgage.
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