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 Loan Terms

Loan Definitions
Loan Terms (A)
Loan Terms (B)
Loan Terms (C)
Loan Terms (D)
Loan Terms (E)
Loan Terms (F)
Loan Terms (G)
Loan Terms (H)
Loan Terms (I)
Loan Terms (J & K)
Loan Terms (L)
Loan Terms (M)
Loan Terms (N)
Loan Terms (O)
Loan Terms (P & Q)
Loan Terms (R)
Loan Terms (S)
Loan Terms (T)
Loan Terms (U & V)
Loan Terms (W)
Loan Terms (X,Y,Z)


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The Mortgage Process


Loan Terms and Definitions (A)

Acceleration Clause: An acceleration clause is usually put in loan documents stating that the lender has the right to call the loan due if the property is transferred without the lender's permission or if the monthly payments become delinquent and the lender seeks to have the loan paid immediately.

Adjustable Rate Mortgages: Adjustable Rate Mortgages are loans that are underwritten with interest rates and monthly payments that are normally lower than fixed rate mortgages but are subject to change at specific intervals as per the contractual agreement between the lender and the borrower.

Amortization: The process by which the length of time is set for a loan to be repaid. Amortization is set up by a predetermined agreement between the borrower and the lender in which the borrower makes payments at regular intervals, usually on a monthly basis over a specific number of year.

Annual Cap: The limit on the amount an adjustable rate mortgage interest rate can increase within a 12 month period.

Annual Percentage Rate (APR): The Annual Percentage Rate is is the cost of money that is projected over the life of a loan. The Annual Percentage Rate may differ from the nominal interest that is being charged to the borrower.

Appraisal: An appraisal is an opinion of value issued in a report, usually written, that is used to substantiate the actual value of a particular property.

Assumable Mortgage: An assumable moorage is a loan on property in which a buyer can take over the existing monthly payments and continue making the payments as per the original terms made between the lender and the seller, without being qualified, or by re-qualifying for the existing loan as if it were a brand new loan.

Automated Underwriting System: An automated underwriting system is used by many lenders to evaluate a borrower's debt ratio, credit report, and other qualifying standards to issue a loan approval electronically.

Arbitration: Arbitration is used to settle a dispute between two parties by using a neutral third party, or panel, to hear the evidence, make an evaluation, and then to make a binding judgment.

Arrearages: Term used for late payments that have accumulated and need to be paid by a borrower. The term "arrearages" is used in court to describe all delinquent payments that are owed when an individual files for bankruptcy protection.

Assets: Things that are owned that have value such as real estate, bank accounts, stocks, bonds, jewelry, automobiles, and other such items. Assets can be used as payment of a debt or can increase net worth.

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