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Abstract (Of Title)
A summary of the public records relating to the title to a particular piece of land. If there are any title defects they must be cleared before a buyer can purchase clear, marketable, and insurable title.
Acceleration Clause
Allows the lender to speed up the rate at which your loan comes due or even to demand immediate payment of the entire balance of the loan should you default on you loan.
Adjustable Rate Mortgage (ARM)
A mortgage in which the interest rate is adjusted periodically based on an index. Also known as the renegotiable rate mortgage, the variable rate mortgage or the Canadian rollover mortgage.
Adjustment Interval
On an adjustable rate mortgage, the time between changes in the interest rate and/or monthly payment, usually one, three or five years.
Agreement of Sale
Known by various names, such as contract of purchase, purchase agreement, or sales agreement according to location or jurisdiction. A contract in which a seller agrees to sell and a buyer agrees to buy, under specific terms spelled out in writing and signed by both parties.
Amortization
Loan payment calculated to pay off the debt at the end of a fixed period, including interest on the outstanding balance.
Annual Percentage Rate (APR)
The cost of credit as a yearly rate.
Appraisal
An estimate of the value of property, made by a professional appraiser.
Appraisal Fee
The charge for estimating the value of property.
Asset
Property that can be used to repay debt, such as stocks and bonds or a car.
Assumption
The agreement between buyer and seller where the buyer takes over the payments on an existing mortgage from the seller. Assuming a loan can usually save the buyer money since this is an existing mortgage debt.
Automated Teller Machines (ATMs)
Electronic terminals through which customers may make deposits, withdrawals, or other transactions as they would through a bank teller.
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