• Glossary

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123 A B C D E F G H I J L M N O P Q R S T U V W

Acceptance

A verbal or written acceptance of an offer to buy a home, made from the seller to the buyer.

Acre

A land measurement commonly used in U.S. property negotiations. One acre equals 43,560 square feet.

Adjustable Rate Mortgage, ARM

A type of mortgage loan characterized by interest rates that automatically adjust or fluctuate in concert with certain market indexes. Generally an ARM begins with an introductory or initial interest rate, which then may rise or fall, but monthly payments may not exceed the ARM loan cap.

Amortization

The process of a loan's value over a period of time. Often amortization is laid out on an amortization schedule or measured by an amortization calculator.

Annual Percentage Rate, APR

The truest cost of a home loan. Per the Truth in Lending Act, all mortgage lenders must disclose their APR. In the mortgage industry, APR may include fees such as documentation fees, private mortgage insurance and more.

Appreciation

The measurable value that increases on a home or property. Market improvements and home renovations often drive appreciation value.

Assessed Value

A value determined by local government assessors and used to calculate annual property or real estate taxes.

Assumable Mortgage

A type of mortgage that may be transferred, interest rate and all, from seller to buyer.

Attorney Fees

Fees possibly due during closing.