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Houston Mortgage > Glossary >
Real Estate > A 1-10
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Adjustable Rate Loan or Adjustable Rate Mortgage (
A loan with an interest rate that changes during the term of the loan. The payments generally increase or decrease with the interest rate. Rate is based on one of several "index" options.
Amortize
Payoff off a debt in installments which includes both principal and interest.
Amount Financed
A required Truth in Lending Act disclosure for consumer loans. It is calculated by starting with the full amount borrowed (principal) and subtracting out the dollar amount of prepaid finance charges (finance charges the borrower is paying in advance).
Annual percentage rate (APR)
A required Truth in Lending Act disclosure for consumer loans. It is a calculation of the cost of credit as a yearly rate and shown as a percentage. It is often higher than the interest rate because it incorporates prepaid finance charges that are not interest.
Application Fee
A fee charged by the lender or broker for the loan application.
Appraisal
A report that estimates the value of real estate.
Appraiser
A person typically hired by a lender to provide an appraisal.
Arbitration
A privately conducted trial to resolve a dispute. Arbitration can be binding (in which case there is no appeal), or non-binding, in which an appeal may be possible.
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