Mortgage Glossary

See, Escrow account

the interest rate at which an Adjustable Rate Mortgage, ARM, will begin. See Adjustable rate mortgage

a figure calculated as a percentage that is used in the financial industry to indicate the rate charged for use of money in a loan. Interest rates may be fixed or variable. See, Annual percentage rate.

real estate bought for investment purposes as opposed to private residential. Often the property will be used for rental purposes, such as rental home, apartments or other spaces that give owners the opportunity to create profit and income over the long term.