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.
An offeree's consent to enter into a contract and be bound
by the terms of the offer.
A payment by a borrower of more than the scheduled
principal amount due in order to reduce the remaining
balance on the loan.
A mortgage that permits the lender to adjust its interest
rate periodically on the basis of changes in a specified
The original cost of a property plus the value of
any capital expenditures for improvements to the property
minus any depreciation taken.
The date on which the interest rate changes for
an adjustable-rate mortgage (ARM).
The period that elapses between the adjustment
dates for an adjustable-rate mortgage (ARM).
A person appointed by a probate court to
administer the estate of a person who died intestate.
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.
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
The gradual repayment of a mortgage loan by installments.
A timetable for payment of a mortgage loan. An
amortization schedule shows the amount of each payment
applied to interest and principal and shows the remaining
balance after each payment is made.
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.
To repay a mortgage with regular payments that
cover both principal and interest.
A report sent to the mortgagor each year. The report shows
how much was paid in taxes and interest during the year, as
well as the remaining mortgage loan balance at the end of
The cost of a mortgage stated as a yearly rate; includes
such items as interest, mortgage insurance, and loan
origination fee (points).
An amount paid yearly or at other regular intervals, often
on a guaranteed dollar basis.
A form used to apply for a mortgage loan and to record
pertinent information concerning a prospective mortgagor and
the proposed security.
A written analysis of the estimated value of a property
prepared by a qualified appraiser. Contrast with
An opinion of a property's fair market value, based on
an appraiser's knowledge, experience, and analysis of the
A person qualified by education, training, and
experience to estimate the value of real property and
An increase in the value of a property due to changes
in market conditions or other causes. The opposite of
The valuation placed on property by a public tax
assessor for purposes of taxation.
The process of placing a value on property for the
strict purpose of taxation. May also refer to a levy against
property for a special purpose, such as a sewer assessment.
The public record of taxable property.
A public official who establishes the value of a
property for taxation purposes.
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.
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. See assumable mortgage.
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
The fee paid to a lender (usually by the purchaser of real
property) resulting from the assumption of an existing
One who holds a power of attorney from another to execute
documents on behalf of the grantor of the power.