Start With The A’s of the Mortgage Glossary

When buying a home, there are many terms that people who are not in the mortgage industry do not know. If you are every confused about some of the words that are thrown around when you are finding the right mortgage, always ask for clarification from your mortgage lender. There is also a mortgage glossary that can help. Although all mortgage-lending terms are in the glossary, it is important to start at the beginning with the A’s.

  • A & D Loan – acquisition and development loan, a loan used to buy undeveloped land for the purpose of developing it.
  • Abstract Title – the written history of owners of a piece of land.
  • Acceleration Clause – allows a lender to speed up the rate at which a loan is due or demand payment in full due to defaulting on a loan.
  • Adjustable Rate Mortgage (ARM) – the interest rate is adjusted periodically on a predetermined scale.
  • Adjustment Interval – the time between the changes of interest rate of an ARM
  • Annual Percentage Rate (APR) – the interest rate that is reflected in the mortgage as a yearly rate.
  • Assumption – an agreement between seller and buyer that the buyer will take over payments of an existing mortgage of the seller.

When it comes to understanding all that goes along with having a mortgage, Contact the lending experts at Avis Lending. We are happy to help you.

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