acceleration clause If a mortgage payment is delinquent or the property is sold without the lender being informed, for example, the lender then has the right to demand that the outstanding balance be paid immediately.
adjustable-rate mortgage A mortgage in which the interest rates change depending on the fluctuations of an index.
amortization Payments that cover both the principle balance on a loan as well as the interest, decreasing the loan amount over time.
annual percentage rate (APR) A value created according to a government formula which reflects the true annual cost of borrowing in percentage form.
appraisal A date-specific estimate or opinion of the value of a property based on the analysis of an impartial third party.
appreciation The increase of the value of a property based on market fluctuations such as inflation.
assessed value The valuation placed on a property by a tax assessor for taxation purposes.
assessor Public official who establishes the value of a property for tax purposes.
asset Real or personal property under ownership and having value.
assignment When ownership of a mortgage is transferred from one business or individual to another.
assumable mortgage A mortgage loan that transfers to the new owner when a property is sold.
assumption When a buyer assumes the seller's mortgage.
