GLOSSARY OF MORTGAGE TERMS
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AGREEMENT OF PURCHASE AND SALE:
A LEGAL AGREEMENT THAT OFFERS A CERTAIN PRICE FOR A HOME. THE OFFER MAY BE FIRM (NO CONDITIONS ATTACHED), OR CONDITIONAL (CERTAIN CONDITIONS MUST BE FULFILLED BEFORE THE DEAL CAN BE CLOSED).
AMORTIZE:
TO GRADUALLY EXTINGUISH A DEBT OR A LIABILITY BY INSTALMENT PAYMENTS.
AMORTIZATION PERIOD:
THE PERIOD OF TIME REQUIRED TO REDUCE A DEBT TO ZERO WHEN PAYMENTS ARE MADE REGULARLY (I.E. THE TIME REQUIRED TO COMPLETELY PAY OUT THE MORTGAGE LOAN). NORMALLY BASED ON 25 YRS.
APPRAISAL:
A PROCESS WHICH DETERMINES THE MARKET VALUE OF A PROPERTY. THE MARKET VALUE MAY OR MAY NOT MATCH THE ACTUAL PURCHASE PRICE OF THE HOME.
APPRAISAL VALUE:
AN ESTIMATE OF THE MARKET VALUE OF THE PROPERTY
ARREARS:
"IN ARREARS" IS TO BE BEHIND IN THE PAYMENTS THAT WERE AGREED UPON.
ASSIGNMENT OF MTG:
A LEGAL TRANSFER OF AN EXISTING MORTGAGE FROM ONE INSTITUTION TO ANOTHER INSTITUTION.
ADVANCE MONEY:
THE AMOUNT OF MONEY GIVEN BY THE LENDER AT TIME OF CLOSING LESS ALL FEES AND INTEREST PAYMENTS DUE. |
