| Term | Definition |
|---|
| ammendment | A modification to an existing contract, mutually agreed to by all parties. Examples might include a change in the pruchase price due to a low appraisal, or a change in the closing date. |
| amortization | The operation of paying off indebtedness, such as a mortgage, by installments. The conventional amortization periods are15 or 30 years. (See term) |
| amortized mortgage | A mortgage requiring periodic payments that include both interest and principal. Also see self amortized loan. |
| annual membership | The amount that is charged annually for having a line of credit available. Often charged regardless of whether or not you use the line. |
| antitrust laws | Federal and state laws prohibiting, among other things, monopolies, monopolistic practices, restraint of trade, and price fixing. |
| application | An initial statement of personal and financial information, which is required to approve your loan. |
| application fee | Fees that are paid upon application. Charges for property appraisal and a credit report are usually included in the application fee. |
| appraisal | A determination of the value of something, such as a house, jewelry or stock. A professional appraiser--a qualified, disinterested expert--makes an estimate by examining the property, and looking at the initial purchase price and comparing it with recent sales of similar property. Courts commonly order appraisals in probate, condemnation, bankruptcy or foreclosure proceedings in order to determine the fair market value of property. Banks and real estate companies use appraisals to ascertain the worth of real estate for lending purposes. And insurance companies require appraisals to determine the amount of damage done to covered property before settling insurance claims. |
| appraised value | An estimate of the present worth. |
| appreciation | An increase in value or worth of property. Opposite of depreciation. |
