Allows the lender to speed up the rate at which your
loan comes due or even to demand immediate payment of the entire outstanding
balance of the loan should you default on your loan.
An offerees consent to enter into a contract and
be bound by the terms of the offer.
Additional Principal Payment
A payment by a borrower of more than the scheduled principal
amount due in order to reduce the remaining balance on the loan.
Adjustable Rate Mortgage (ARM)
A mortgage in which the interest rate is adjusted periodically
based on a preselected index. Also sometimes known as the renegotiable
rate mortgage, the variable rate mortgagee or the Canadian rollover
A detailed analysis of your ability to afford the purchase
of a home. An affordability analysis takes into consideration your income,
liabilities, and available funds, along with the type of mortgage you
plan to use, the area where you want to purchase a home, and the closing
costs that you might expect to pay.
On an adjustable rate mortgage, the time between changes
in the interest rate and/or monthly payment, typically one, three or
five years, depending on the index.
A legal relationship resulting from an agreement or contract,
either expressed or implied, written or oral, whereby one person, called
the agent, is employed by another, called the principal, to do certain
acts in dealing with a third party.
In real estate, amenities refer to such circumstances,
in regard to location outlook, or access to a park, lake, highway, view
or the like which enhance the pleasantness or desirability of real estate
and which contribute to the pleasure and enjoyment of the occupants.
Loan repayment by equal periodic payments calculated
to pay off the debt at the end of a fixed period, including accrued
interest on the outstanding balance.
Mathematical table that shows how a mortgage or other
loan is gradually repaid by applying the appropriate amounts of the
loan payment to principal and interest. In the beginning of the repayment
period, only a small portion is applied to reducing the loan principal.
As the loan approaches maturity, the portion of the payment applied
to principal rises.
Annual Mortgagor Statement
A report sent to the mortgagor each year. The report
shows how much was paid in taxes and interest during the year, as well
as the remaining mortgage loan balance at the end of the year.
Annual Percentage Rate (APR)
An interest rate reflecting the cost of a mortgage as
a yearly rate. This rate is likely to be higher than the stated note
rate or advertised rate on the mortgage, because it takes into account
points and other costs. For example, if a borrower pays $500 in closing
costs to obtain a $10,000 loan, the APR is higher than the simple interest
rate because the borrower is repaying a $10,000 loan but only receiving
net proceeds of $9,500. The federal Truth-in-Lending Act requires lenders
to disclose the APR.
In real estate, an estimate of the quality or value of
property, made by a qualified professional called an "appraiser"
That which belongs to something else; something adapted
to the use of the real property to which it is connected or belongs,
and which was intended to be a permanent addition to the land, and which
passes as an incident to said land, as a house, barn, garage, right
The estimate of value by a unit of government for taxation
The party to whom a legal right has been assigned or
A transfer to another of a legal right.
The party who assigns or transfers a legal right.
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, unlike a new mortgage where closing costs and new, possibly higher,
market rate interest charges will apply.
A type of encumbrance, permitted only under special circumstances,
which is placed against the real estate of a defendant in a pending
lawsuit for money damages.