Glossary - CLS Financial
22122
page-template,page-template-full_width,page-template-full_width-php,page,page-id-22122,page-child,parent-pageid-21544,ajax_fade,page_not_loaded,,select-child-theme-ver-1.0.0,select-theme-ver-3.2.2,wpb-js-composer js-comp-ver-4.12,vc_responsive
 

Glossary

Get definitions on the mortgage terms that may come up throughout your loan process, as well as any specific mortgage terms that may be unfamiliar to you. CLS FInancial wants to ensure that you have a complete understanding of the transaction.

Our mortgage glossary will help you to speak to mortgage professionals with confidence.

Glossary

All | # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
There are 13 names in this directory beginning with the letter A.
Abstract of Title
A historical summary provided by a title insurance company of all records affecting the title to a property.

Acceleration
The right of the lender to demand payment on the outstanding balance of a loan.

Adjustable Rate Mortgage (ARM)
A mortgage that has a fixed rate of interest for only a set period of time, usually one, three or five years. During the initial period the interest rate is lower, and after that period it will adjust based on an index.

Adjustment Date
The actual date that the interest rate is changed for an ARM.

Amenities
Features of your home that fit your preferences and can increase the value of your property. Some examples include the number of bedrooms, bathrooms, or vicinity to public transportation.

Amortization
The liquidation of a debt by regular, usually monthly, installments of principal and interest. An amortization schedule is a table showing the payment amount, interest, principal and unpaid balance for the entire term of the loan.

Amortization Schedule
A schedule of how the loan is intended to be repaid. For example, a typical amortization schedule will include the amount borrowed, the interest rate, and the term. The result will be a month-by-month breakdown of how much every month is paid in interest versus how much is paid down on the principal.

Annual Percentage Rate (APR)
A measure of the cost of credit, expressed as a yearly rate. It includes interest as well as other charges. Because all lenders, by federal law, follow the same rules to ensure the accuracy of the annual percentage rate, it provides consumers with a good basis for comparing the cost of loans, including mortgage plans. APR is a higher rate than the simple interest of the mortgage.

Appraisal
Appraisals are conducted to give an estimate of the value of a property. They are conducted by certified professionals who evaluate a piece of property based on a physical inspection and the selling price of comparable houses that have recently been sold.

Appreciation
An increase in property value.

Assessment
Charges levied against a property for tax purposes or to pay for municipality or association improvements such as curbs, sewers, or grounds maintenance.

Assignment
The transfer of a contract or a right to buy property at given rates and terms from a mortgagee to another person.

Assumption
An agreement between a buyer and a seller, requiring lender approval, where the buyer takes over the payments for a mortgage and accepts the liability. Assuming a loan can be advantageous for a buyer because there are no closing costs and the loan's interest rate may be lower than current market rates. Depending on what is in the mortgage or deed of trust, the lender may raise the interest rate, require the buyer to qualify for the mortgage, or not permit the buyer to assume the loan at all.