Adjustable Rate—an interest rate, which varies from time to time with regard to the index.  Payments can rise or fall consequently.
Amortization—a repayment method in which the sum you borrow is paid off regularly although habitual payments of principal and interest.
Within the initial several years, almost every payment is applied to the interest to be paid. Within the final years of the loan, amounts of payment are applied towards the outstanding principal.
Annual Membership—a sum that can be charged every year for having a credit line. Usually charged irrespective of whether you make use of the line or not. Sometimes it is called a “participation fee.”
Application—the first declaration of private and financial information necessary to endorse your loan.
Application Fee—charges paid right after application. An application fee can often involve fees for property evaluation and a credit account.
Appraisal—a charge set by an evaluator to deliver an estimation of market value as of a particular date. It is necessary to get a loan.
Assumption of Mortgage—the agreement of a buyer to become mostly responsible for the payments on a mortgage loan. If not stated by the lender, the vendor may stay secondarily responsible for payments.
Cash Out—getting money back when refunding your current mortgage.
Ceiling—the highest acceptable interest rate within the life of the loan of a flexible rate mortgage.
Closing Costs—any charges paid by the borrowers or vendors for the period of closing of the mortgage loan. That usually involves an origination charge, reduction points, lawyer’s charges, title insurance, assessment and any points that should be prepaid, like duties and insurance escrow payments.
Contract of Sale—the contract between the purchaser and the seller on the buying price, conditions and terms essential for either party to pass on the title to the purchaser.
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