Loan Glossary
Plain-English definitions for every term you'll encounter in the loan process
Showing 3 terms
in Mortgage starting with A
A
Adjustable-Rate Mortgage (ARM)
MortgageA mortgage whose interest rate changes periodically based on a benchmark index. Initial rate is usually lower than a fixed-rate loan, but payments can rise after the introductory period ends.
Appraisal
MortgageAn independent professional estimate of a property's market value. Lenders require appraisals to ensure the collateral is worth at least the loan amount before approving a mortgage.
Assumption
MortgageTaking over the seller's existing mortgage. VA and FHA loans are often assumable, potentially allowing a buyer to inherit a lower interest rate from a previous owner.