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Acceleration clause:
A provision in a mortgage that gives the lender the right to demand payment of the entire outstanding balance if a monthly payment is missed.
Adjustable-rate mortgage (ARM):
A mortgage in which the interest rate changes over time based on an index and a margin. Rate changes are made at prescribed times and within prescribed limits (caps) as defined in the mortgage contract.
Amortization:
The gradual repayment of a mortgage by installments.
Amortization schedule:
A timetable for payment of a mortgage showing the amount of each payment applied to interest and principal and the remaining balance on the loan.
Annual percentage rate (APR):
The total yearly cost of a mortgage stated as a percentage of the loan amount. This includes the base interest rate, mortgage insurance, origination fees, and some other related fees. See your lender for a more complete explanation of what fees are used to calculate your APR.
Appraisal:
A professional opinion of the market value of a property.
Appreciation:
An increase in the value of a house due to changes in market conditions or other causes.
Assessed value:
The valuation placed upon a property by a public tax assessor for purposes of taxation.
Assumable mortgage:
A mortgage that can be taken over ("assumed") by the buyer when a home is sold.
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