Real Estate Appraisal Terms and Definitions:

1 year adjustable (ARM):  A loan with a fixed rate for the first 1 year
that has a rate that changes once each year for the remaining life of
the loan. Because the interest rate can change after the first 1 year,
the monthly payment may also change.

10 year adjustable (ARM):     Loan with a fixed rate for the first 10
years that has a rate that changes once each year for the remaining
life of the loan. Because the interest rate can change after the first
10 years, the monthly payment may also change. 

2 year adjustable (ARM):  A loan with a fixed rate for the first 2 years
that has a rate that changes once each year for the remaining life of
the loan. Because the interest rate can change after the first 2 years,
the monthly payment may also change. 

3 year adjustable (ARM):  A loan with a fixed rate for the first 3 years
that has a rate that changes once each year for the remaining life of
the loan. Because the interest rate can change after the first 3 years,
the monthly payment may also change. 

5 year adjustable (ARM):   A loan with a fixed rate for the first 5 years
that has a rate that changes once each year for the remaining life of
the loan. Because the interest rate can change after the first 5 years,
the monthly payment may also change. 

7 year adjustable (ARM):   A loan with a fixed rate for the first 7 years
that has a rate that changes once each year for the remaining life of
the loan. Because the interest rate can change after the first 7 years,
the monthly payment may also change. 

Abstract (of Title):  A summary of the public records relating to the
title to a particular piece of land. If there are any title defects
they must be cleared before a buyer can purchase clear, marketable, and
insurable title. 

Acceleration Clause:  Allows the lender to speed up the rate at which
your loan comes due or even to demand immediate payment of the entire
balance of the loan should you default on you loan. 

Adjustable Rate Mortgage (ARM):  A mortgage in which the interest rate is
adjusted periodically based on an index. Also known as the renegotiable
rate mortgage, the variable rate mortgage or the Canadian rollover
mortgage. 

Adjustment Interval:  On an adjustable rate mortgage, the time between
changes in the interest rate and/or monthly payment, usually one, three
or five years. 

Affiliate:  An entity related to a Seller that is subject to common
operating control and that is operated as part of the same system or
enterprise. The Seller typically owns less than a majority of the
voting stock or the Seller and the entity are subsidiaries of a third
party. 

Affordable Gold 5:  Mortgage with less than or equal to 95 percent LTV,
when at least 5 percent of the downpayment comes from the borrower's
personal cash.

Affordable Gold 97:  Mortgage with greater than 95 percent loan-to-value
(LTV) ratio but less than or equal to 97 percent LTV, when at least 3
percent of the downpayment comes from the borrower's personal cash. 
Affordable Product Type  Choice of loan determined under the Affordable
Gold program. Indicates whether to submit the loan under the Affordable
Gold program and, if so, which type of program.

Affordable Seconds:  Subsidized secondary financing or other financial
assistance provided under an established, documented secondary
financing or financial assistance program that has formal procedures in
place to provide applicant qualification, loan processing, and loan
program administration on an ongoing basis.

Agreement of Sale:  Known by various names, such as contract of purchase,
purchase agreement, or sales agreement according to location or
jurisdiction. A contract in which a seller agrees to sell and a buyer
agrees to buy, under specific terms spelled out in writing and signed
by both parties.

Amortization:  The gradual reduction of a debt by periodic payments of
interest and principal that are large enough to pay off a loan at
maturity. The loan is repaid through regular, monthly payments of
principal and interest paid for a predetermined amount of time.

Annual Percentage Rate (APR):  The annual cost of a loan to a borrower.
Like an interest rate, the APR is expressed as a percentage of the loan
amount. Unlike an interest rate, however, it includes other charges or
fees to reflect the total cost of the loan. The Federal Truth in
Lending Act requires that every consumer loan agreement disclose the
APR in large, bold print. Since all lenders must follow the same rules
to ensure the accuracy of the APR, borrowers can use the APR as a good
basis for comparing the cost of loans.

Appraisal:  A written analysis of the estimated value of a property, as
prepared by a qualified appraiser. A fee is typically charged for a
real estate appraisal because a home appraisal is time-consuming. An
appraisal of an auto is usually not necessary because auto dealers,
sellers and buyers all have quick access to the market value of autos.

Appraisal Fee:  The charge for estimating the value of property. 

Appraiser network:  Group of licensed/certified individuals or entities
contracted to perform property value assessments. 

Assessment Report:  Report that appraisers use to record property values,
marketability analyses and any pertinent comments regarding the subject
property. Assessment reports are classified as appraisal reports or
inspection reports. 

Assessment Upgrade:  Approved recommendation from an appraiser that you
must use a more comprehensive type of assessment. An example of an
upgrade recommendation includes any adverse/atypical findings or other
atypical property or neighborhood condition observed by the appraiser.
You must also upgrade an assessment when its value does not support the
loan transaction; the appraiser is unable to view the subject property
from the public street; the assessment is "subject to" completion; or
repair or property rights are leasehold. 

Asset:  Anything that has monetary or exchange value that is owned by an
individual, business or institution. Assets include real estate
property, personal property, vehicles and enforceable claims against
others (including bank accounts, stocks, mutual funds, and so on). A
lender is very interested in the amount and value of any assets you may
have because assets can be used as collateral against a loan. Along with
other factors such a a borrower's credit rating, assets are also used to
help determine the amount of the loan. 

Assumable Mortgage:  An assumable mortgage is a mortgage that allows you
to take over a mortgage on a home you are buying or allows a buyer to
take over your mortgage if you are selling your house. The advantage of
this is that you assume a mortgage that has a lower interest rate than
current rates, and you avoid high closing costs. 

Assumption:  The agreement between buyer and seller where the buyer takes
over the payments on an existing mortgage from the seller. Assuming a
loan can usually save the buyer money since this is an existing
mortgage debt.