General
Financial Glossary - Financial Terms A to D
Amortization
- Repayment of a loan by intstallment payments.
Amortization
Schedule - Shows a breakdown of how much of an
installment payment goes towards the principal of a loan
and how much goes toawards interest, insurances etc.Timetable
for payment of a home loan showing what amount of each payment
is applied to principal and interest for the remaining balance
of the loan.
Annual
Percentage Rate (APR) - Total yearly cost of a
loan as a percentage of the loan amount which includes the
base interest rate, loan origination fee (points), and primary
mortgage insurance (PMI).
Appreciation
- Increase of property value due to market changes or conditions.
Assumable
Loan - A loan that can be assumed or taken over
by the buyer when property is sold.
Assumption
- Transfer of the seller's mortgage to the buyer
Binder
- An agreement secured by earnest money, which a buyer offers
to purchase real estate.
Cap
- A provision limiting how much the interest rate or payments
can increase on an ARM.
Cash
Reserve - Amount of money a buyer has left over
after closing. Some lenders may require borrowers to a certain
amount of cash reserve available after closing.
Clean
Title - A title that is free from liens and or
legal restraints or questions as to who owns the property.
Closing
- Finalization of a loan.
Closing
Costs - Expenses incurred by the buyer during transfer
of ownership of a property.
Community
Property - Property acquired during a marriage
by husband and wife. Each spouse has equal rights to the
property. If the property is sold each spouse is entitled
to his or her share of the moneytary value of the sold property
price.
Contingency
- Condition that must be met before a contract is legally
binding.
Covenant
- Obligates or restricts the borrower and if violated can
result in foreclosure or repossession of the property.
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Credit
Report - A report generated by a credit bureau
that shows an individuals credit or repayment history over
time. Used by lenders to determine creditworthiness.
Default
- Failure to complete payments to the lender under the original
conditions of the loan.
Delinquency
- A term which is used when a payment on a loan is overdue.
Depreciation
- Decline in property value. Opposite of Appreciation.
Down
Payment - Initial money put down as a deposit on
a property.
Due
on Sale Clause - A loan provision which allows
the lender to demand repayment of the loan in full if the
property is sold.
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General
Finance Glossary - Financial Terms A to D
Finance
Terms E -H
Finance Terms
I - L
Mortgage Terms
M - P
Mortgage Terms
Q - T
Mortgage Terms
U - Z
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