Quickloans Glossary

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A

ACCELERATION CLAUSE
Allows the lender to demand immediate payment of the balance of the loan should you default on your payments.

ADJUSTABLE RATE MORTGAGE (ARM)
A mortgage in which the interest rate is adjusted periodically based on a designated financial index. Also known as variable rate mortgage.

ADJUSTMENT INTERVAL
On an adjustable rate mortgage, the time between changes in the interest rate and/or monthly payment.

AMORTIZATION
Equal periodic payments calculated to pay off the loan at the end of a fixed period, typically 15 or 30 years.

ANNUAL PERCENTAGE RATE (APR)
An interest rate reflecting the cost of a loan as a yearly rate. This rate is likely to be higher than the stated note rate on the mortgage, as it takes into account points and other credit costs. The APR allows borrowers to compare different types of mortgages based on the annual cost for each loan.

APPRAISAL
Estimate of the value of property by a qualified professional called an "appraiser."

ASSUMPTION
Agreement between buyer and lender where the buyer takes over the payments on an existing mortgage.

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