Adjustable-Rate Mortgage
A mortgage loan with an interest rate that can change at any time, usually in response to the market or Treasury bill rates. These types of loans usually start off with a lower interest rate comparable to a fixed-rate mortgage.
Adjustment Date
The actual date that the interest rate is changed for an ARM.
Affidavit
A signed, sworn statement made by the buyer or seller regarding the truth of information provided.
Amortization
Payment of a debt with equal periodic installments of principal and interest. This is calculated to amortize (pay-off) at the end of a fixed period of time.
Annual Mortgagor Statement
Yearly statement to borrowers detailing the remaining principal and amounts paid for taxes and interest.
Appraisal
A document from a professional that gives an estimate of a property’s fair market value based on the sales of comparable homes in the area and the features of a property; an appraisal is generally required by a lender before loan approval to ensure that the mortgage loan amount is not more than the value of the property.
Appraisal Fee
Fee charged by an appraiser to estimate the market value of a property.
Appraised Value
An estimation of the current market value of a property.
Appraiser
A qualified individual who uses his or her experience and knowledge to prepare the appraisal estimate.
Appreciation
An increase in the value of property over time.
Attorney Advance
Funds paid by the servicer for attorney fees and costs in connection with the protection of its lien position in connection with title to the property or collection actions and/or foreclosure services as a result of a default on the mortgage loan. These funds will be assessed to the mortgage loan balance due if permitted under the mortgage loan documents and allowable pursuant to applicable state law.
Automated Clearing House (ACH)
An automatic program through which the borrower consents to have mortgage payments withdrawn from a designated account every month without charge.
