Mortgage Glossary

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

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

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.

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.

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.

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

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

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

fees possibly due during closing.