Abstract of Judgement
The summary of court judgement that creates a lien against a property when filed with the county recorder.
Abstract of title
The historical summary of all the recorded instruments and proceedings that affect the title to a property.
Acceleration Clause
A clause in your mortgage which allows the lender to demand payment of the outstanding loan balance for various reasons. The most common reasons for accelerating a loan are if the borrow defaults on the loan or transfers to another individual without informing the lender. See also Due on Sale.
Acre
An area of land equaling 4.840 square yards or 43,560 square feet.
Ad Valorem Tax
"ad valorem" is Latin for "According to Value" - a tax based on the assessed value of real estate or personal property.
Addendum
An addition to a contract or agreement.
Adjustable-Rate Mortgage (ARM)
A mortgage in which the interest changes periodically, according to corresponding fluctuations in an index. All ARMs are tied to indexes.
Adjustment Date
The date the interest rate changes on an adjustable-rate mortage.
Adverse Possession
A means of acquiring title to real estate where an occupant has been in actual, open, exclusive and continuous occupancy of property for the period required by state law.
amortization
The loan payment consists of a portion which will be applied to pay the accruing interest on a loan, with the remainder being applied to the principal. Over time, the interest portion decreases, and the amount applied to principal increases so that the loan is paid off (amortized) in the specified time.
amortization schedule
A table which shows how much of each payment will be applied toward principal an how much toward interest over the life of the loan. It also shows the gradual decrease of the loan balance until it reaches zero.
application
The form used to apply for a mortgage loan, containing information about a borrower's income, savings, assets, debts, and more.
appraisal
A written justification of the price paid for a property, primarily based on an analysis of comparable sales of similar homes nearby.
appraised value
An opinion of a property's fair market value, based on an appraiser's knowledge, experience, and analysis of the property. Since an appraisal is based primarily on comparable sales, and the most recent sale is the one on the property in question, the appraisal usually comes out at the purchase price.
appraiser
An individual qualified by education, training, and experience to estimate the value of real property and personal property. Although some appraisers work directly for mortgage lenders, most are independent.
appreciation
The increase in the value of a property due to changes in market conditions, inflation, or other causes.
assessed value
The valuation placed on property by a public tax assessor for purposes of taxation.
assessment
The placing of a value on a property for the purpose of taxation.
assessor
A public official who establishes the value of a property for taxation purposes.
asset
Items of value owned by an individual. Assets that can be quickly converted into cash are considered liquid assets. These include bank accounts, stocks, bonds, mutual funds, and so on. Other assets include real estate, personal property, and debts owed to an individual by others.
assignment
When ownership of your mortgage is transferred from one company or individual to another.
assumable mortgage
A mortgage that can be assumed by the buyer when a home is sold. Usually, the borrower must qualify in order to assume the loan.
assumption
The term applied when a buyer assumes the seller's mortage.
