Most Popular Mortgage Terms - Mortgage Glossary

ABANDONMENT : The act of giving up one's property voluntarily any without intending to reclaim it.

ABSOLUTE AUCTION : ABSOLUTE AUCTION is a types of auction in which a property is sold to the bidder and offering the highest money without considering the winning bid.

ABSORPTION RATE : It is a rate that gives us an rough idea of the number of properties bought and sold in a specified market.

Adjustable Rate Mortgage (ARM) : It is an interest rate that changes periodically in relation to an index called Adjustable Rate. The payments may increase or decrease accordingly.Amortization— Amortization is a repayment method in which total amount you borrow is repaid gradually though regular monthly payments of interest and principal.

Annual Membership : Annual Membership is An amount that may be charged annually for having a line of available credit.They Often charged regardless whether you use the line or not.Annual Membership is Also referred to as a participation fee.

Annual Percentage Rate (APR) : It is the rate of interest on a yearly basis, which includes charges on the mortgage loan and the interest payment.

Application (Mortgage Application) : Application is an initial statement of financial information and personal information which is required to approve your loan.
Application Fee-- A small (or may be big in some time)amount that are paid upon application. An application amount(fee) may frequently include charges for property appraisal ($200-$400) and a credit report ($30-50).

Assessment : The Process in which we determining a property's value for the purpose of taxation is called Assessment.

Assumable Loan : This types of loans may be passed on from a seller of a home to the buyer. The buyer "assumes" all outstanding payments.

ATTORNEY WITNESS FEE : An attorney is required to be present at the time of closing of a loan. He acts as a witness to signing the legal papers and charges a fee for that.