Accelerated Clause: Loan verbiage that provides the lender with the right to demand payment of the entire outstanding balance on your home loan, if you miss a monthly payment, sell the home, or otherwise fail to perform as promised under terms of your mortgage.

Adjustable Period: The length of time between interest rate changes on an ARM. For example, a loan with an adjustable period of one year is called a one-year ARM, which means that the interest rate can change once per year.

Adjustable Rate Mortgage (ARM): A mortgage that permits the lender to adjust the interest rate periodically on the basis of changes in a specified index. See Fixed-rate Mortgage.

Adjustment Period: How often the rate of an adjustable rate mortgage adjusts (see Adjustable Rate Mortgage).

Affidavit: A sworn statement in writing, made before an authorized official.

ALTA: Abbreviation for the American Land Title Association.

Amortization: Repayment of a loan in equal installments of principal and interest rather than interest only payments.

Annual Percentage Rate (APR): The total finance charge (interest, loan fees, points expressed as a percentage of the loan amount).

Appraisal: A written analysis of the estimated value of a property prepared by a qualified appraiser.

Appreciation/depreciation: Refers to either the increase (appreciation) or the decrease (depreciation) in a home’s value.

Assessed value: The value of a property according to your local tax assessor; determines how much you will pay in property taxes.

Assessments: Specific and special taxes (in addition to normal taxes) imposed on real property to pay for public improvements within a specific geographic area.

Assumption of Mortgage: A buyer’s agreement to assume the liability on an existing note that is secured by a mortgage or deed of trust. The lender must approve the buyer in order to assume the loan.

Courtesy of Sonata Realty