Amortization - is the process of paying off debt; the gradual reduction of a debt, such as a Mortgage loan in regular payments over a given period of time. This usually takes place by making Monthly Payments throughout the term of the loan. During the early yearly payments of the Mortgage most of the payment amount made towards Interest and little is paid towards the principal (the loan amount itself)

Acceleration clause – it is a Mortgage agreement stipulation that states if you miss a Monthly Payment, sell your Property or fail to perform as agreed in your loan provisions; the Lender may demand payment of the entire loan Balance.

Appraisal – is an estimated Market Value of the Property by a professional Appraiser.It is a carefully calculated opinion of the value of the Property made by a qualified professional Appraiser. The Lender uses the Appraisal to get an Estimate of how much the Property is valued.

Adjustable Rate Mortgage (ARM) - a Mortgage loan with Interest Rates and payments that vary throughout the life of the loan. The Interest Rate usually starts with a low percentage and gradually increases. The Interest Rate has the ability to go down also. The percentage rate is determined by various known indexes.

Annual Percentage Rate (APR) - the annual cost the borrower pays for the loan the APR includes the base Interest Rate of the loan, Points (if any) and other fees.

Application- is the actual process of filing out paperwork and information to request a Mortgage loan.

Application fees –cost for a Credit Report check and what the Lender usually charges to process the loan.  

Closing - is the last step where the Lender transfers funds to the seller in exchange to the property's Title.

Deed - a certificate that transfers Title from one owner to another.

Down payment - is payment made for Property purchase.

Equity -is the difference between the Market Value of a real Property and the amount the borrower owes.

Interest Rate – is the charge taken as a percentage of the amount of the loan.

Prepayment Penalty – is a stipulation in the Mortgage loan that states that in the event you pay off the loan entirely, you will pay a penalty.

Principal – is the base amount of a Mortgage loan.

Title insurance - protects your Title against the ownership of the Property.