Glossary A-B
Please click on the first letter of the word or phrase you are looking for.
| A |
| ABSTRACT OF TITLE: A written history of ownership of a parcel of land, summarizing the material parts of any occurrence affecting title of said land. |
| ACCESS RIGHTS: A right to ingress from one's property; may be implied or expressed. |
| ACCRUED INTEREST: Interest earned for the period of time elapsed since interest was last paid. |
| ACKNOWLEDGEMENT: A formal declaration attached to or part of an instrument, made before a duly authorized officer (usually a notary public) by the person who has executed that instrument, the execution being a free act and deed. |
| ACTION TO QUIET TITLE: A court action to remove any interest or claim in or title to real property; to remove a cloud on title. |
| ADJUSTABLE RATE MORTGAGE: A mortgage loan or deed of trust which allows the lender to adjust the interest rate in accordance with a specified index periodically and as agreed to at the inception of the loan. Also called variable rate mortgages (VRM). |
| AD VALOREM TAXES: Real estate taxes on the assessed value of property. |
| AFFIDAVIT: A sworn statement in writing, usually requiring notarization. |
| AMERICAN LAND TITLE ASSOCIATION (ALTA): A national association of title insurance companies, abstractors and attorneys specializing in real property laws. The association speaks for the title insurance and abstracting industry and establishes standard procedures and title policy forms. |
| AMORTIZATION: Repayment of a mortgage debt with equal periodic payments of both principal and interest, calculated to retire the obligation at the end of a fixed period of time. |
| AMORTIZATION SCHEDULE: A table showing the amounts of principal and interest due at regular intervals and the unpaid mortgage balance after each payment is made. |
| ANNUAL MORTGAGE STATEMENT: A report prepared by the lender or servicing agent for the mortgagor, stating the amount of taxes, insurance and interest that was paid during the year and the outstanding principal balance. |
| ANNUAL PERCENTAGE RATE (APR): A term defined in section 106 of the federal Truth in Lending Act (P1-90-321; 15 Usc 1606), which expresses on an annualized basis the charges imposed on the borrower to obtain a loan (defined in the Act as "finance charges"), including interest, discount and other costs. |
| APPLICANT: A prospective borrower who has completed an application. An application is a series of steps, usually including the completion of documents a lender requires of those seeking a loan. |
| APPRAISAL: An opinion or estimate of value. Also refers to the process by which a value estimate is obtained. |
| APR: See annual percentage rate. |
| ARREARS: The situation in which mortgage interest and real estate taxes are paid at or after the end of the period for which they are levied. Late payment is also described as being in arrears. |
| ASSESSMENT: A value factor assigned to real property and used to determine real property taxes. The process of reaching the assessed valuation. Also, an add-on tax to raise money for a special purpose |
| ASSIGNMENT: The transfer of ownership, rights or interests in property, as is in a mortgage, lease or deed of trust. |
| ASSIGNMENT OF MORTGAGE: A document that evidences the transfer of a mortgage from one party to another. |
| ASSUMPTION AGREEMENT: A written agreement by one party to pay an obligation originally incurred by another. |
| ASSUMPTION FEE: The amount paid a lender for the paperwork and processing of records necessary to approve and document a new debtor. |
| ASSUMPTION OF MORTGAGE: A buyer's acceptance of primary liability for payment of an existing note secured by a mortgage or deed of trust. The seller remains secondarily liable, unless specifically released by the lender. |
| AUTOMATIC LENDER: A VA program that enables eligible single-family lenders to conduct the processing and closing of VA single-family loan applications without VA's prior review. The VA is, however, responsible for performing the appraisal report for all VA loans including those performed via the Automatic Lender program |
| B |
| BALLOON MORTGAGE: A mortgage with periodic installments of principal and interest that do not fully amortize the loan. The balance of the mortgage is due in a lump sum at a specified date, usually at the end of the term. |
| BANKRUPT: An individual firm, or corporation who through a court proceeding, is relieved from payment of all debts. Bankruptcy may be declared under one of several chapters in the federal bankruptcy code: Chapter 7, which covers liquidation of individual or business assets; Chapter 11, which covers reorganization of bankrupt businesses; Chapter 12, which covers certain farm bankruptcies; and Chapter 13, which covers workouts of debts by individuals. |
| BI-WEEKLY MORTGAGE: A mortgage with payments due every two weeks, totaling 26 payments a year. |
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BLANKET: The coverage of more than one piece of property under on instrument, such as blanket insurance policy, blanket deed of trust, blanket assignment or blanket survey |
| BOND LOAN: A state-sponsored method of assisting low income borrowers and first time homeowners in the purchase of a home at a reduced interest rate. |
| BORROWER: One who receives funds in the form of a loan with the obligation of repaying the loan in full with interest. |
| BUY-DOWN MORTGAGE: A mortgage with a below-market interest rate made by a lender in return for an interest rate subsidy in the form of additional discount points paid by the builder, seller or buyer. |
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