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Mortgage glossary
Whether you are buying a home or refinancing, applying for a mortgage is a big step. Use our mortgage glossary to help you through the process. Our comprehensive glossary of mortgage loan terms is even used by loan officers and real estate professionals. Bookmark our mortgage glossary as a quick mortgage definitions and vocabulary reference. |
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- Additional principal payment
If you want to pay off a loan early, an additional principal payment is the way to do it. In amortized loans, such as most mortgages and auto loans, most of the early payments go toward principal. Making at least one extra payment a year can cut the length of a loan by as much as a quarter and sharply reduce the total interest paid.
- Amortization
The process of paying a debt in segments over a set period of time, with a portion of each payment going toward principal, a portion toward interest.
- Annual percentage rate (APR)
The APR of loans is calculated in a standardized way that takes fees into account, making it easier to compare loans. Unfortunately, in mortgages, the APR is of limited value, since by law lenders can omit some fees, rendering meaningful comparisons difficult.
- Application
You fill out this document when taking out a loan so that a lender can check your credit and decide whether to give you the loan, and at what rate. In most cases, you will be required to give your Social Security number and approve a credit check for the process to go forward.
- Appreciation
When an asset increases in value over time. When homes appreciate, so does your home equity.
- As-is condition
A warning from seller to buyer that a home or car or other item is sold in its current state, without warranty.
- Asking price
What the buyer wants the seller to pay. Often subject to negotiation.
- Automatic payment
When consumers agree to allow a lender to deduct the monthly loan payment directly from a specified bank account. Because computer programs are more reliable than human bill-payers, lenders often offer a slight discount to borrowers who agree to automatic payments.
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National
mortgage rates |
| 5/15/2008 8:14:10 PM
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